Unlike Joe Biden, investors and the public at large believe the US is entering a recession.
Biden claimed he doesn’t think they’ll be a recession – even though the US has technically been in one the last two quarters – and says if there is one, it’ll be “very slight.”
“It hadn’t happened yet. It hadn’t… I don’t think there will be a recession,” he told CNN. “If it is, it’ll be a very slight recession. That is, we’ll move down slightly.”
On the other hand, JPMorgan’s Jamie Dimon said the U.S. is likely to tip into a recession within the next nine months.
“These are very, very serious things which I think are likely to push the U.S. and the world — I mean, Europe is already in recession — and they’re likely to put the U.S. in some kind of recession six to nine months from now,” Dimon said in regards to inflation and rising interest rates.
He warned the S&P 500 could even fall another 20%, stating that “the next 20% would be much more painful than the first.”
City planners across the country are already preparing for an upcoming recession, according to a new survey by the National League of Cities.
“Concerns about an impending recession have forced many municipalities to budget conservatively, the report said,” according to Financial Advisor Magazine. “Cities have already been grappling with supply-chain issues, which have impacted their cost of operations and made infrastructure projects challenging.”
Furthermore, the National League of Cities CEO said that “America’s cities are bracing for stagflation and possible economic downturn.”
Investors are already bracing for an upcoming recession, with the popular ETF Trends blog already publishing an article on “recession realities.”
“In the face of pessimism about the possibility of a recession and the Fed’s efforts to curb inflation at any cost, many investors may be worried,” the outlet wrote. “An analysis of the historical data from past recessions suggests that waiting for favorable market conditions could leave an investor at a disadvantage, compared to those who remain in, or enter, the market, irrespective of current conditions.”