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US stocks pricing recession more than any other asset
US equities have been hammered this year as signs of stubbornly high inflation and a hawkish Federal Reserve raise the specter of recession, even as President Joe Biden has said a downturn will be “very slight.”
By Abhishek Vishnoi
(Bloomberg) — US equities are pricing in the highest odds of a recession than any other asset class and may be poised for more losses, according to Citigroup Inc.'s quantitative strategists.
"US equities have priced the most (but not enough) recession risk, and earnings estimates have further to adjust," strategists including Alex Saunders wrote in a note dated Oct. 18. "US bonds have priced the least risk, but it will take some time before bonds react to recession risks given the hawkish Fed."
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