Investors overseeing $5 trillion are betting that an economic recession can be avoided

It appears that a risky bet is on the horizon as professional investors claim that an economic recession is avoidable.
Published on

By Lu Wang

Professional investors are loading up on bets that an economic recession can be avoided despite all the warnings to the contrary. It's a dangerous bet — for a variety of reasons.

Money managers have been favoring economically sensitive equities, such as industrial companies and commodity producers, according to a study from Goldman Sachs Group Inc. on positioning by mutual funds and hedge funds with assets totaling almost $5 trillion. Shares that tend to do well during economic downturns, like utilities and consumer staples, are currently out of favor, the analysis shows.

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