The US economy has been on a rollercoaster ride for the past few years, with economic growth and stability proving elusive. Despite the recent strength of the jobs market and consumer spending, there are fears that the country may be heading for a full-blown recession.
These fears have been exacerbated by recent comments from Wall Street strategists and company CEOs, who have warned of a slowdown in the US economy.
According to Bank of America’s Michael Hartnett, there are twelve charts that provide compelling evidence that a recession is imminent.
These charts point to a number of factors, including weakening global growth, declining corporate profits, and rising levels of debt.
One of the key indicators of a recession is a slowdown in global growth.
The chart produced by Bank of America shows that global growth has been declining steadily over the past few years.
This is due to a number of factors, including the ongoing trade war between the US and China, as well as political uncertainty in Europe.
Another worrying sign is the decline in corporate profits. According to the chart produced by Bank of America, corporate profits have been on a downward trend for the past few years.
This is partly due to the ongoing trade war, which has hurt companies that rely on global trade.
Another factor that is causing concern is the rising levels of debt.
The chart produced by Bank of America shows that global debt has been rising steadily over the past few years, reaching record levels in 2019.
This is a worrying trend, as high levels of debt can lead to a financial crisis.
Other factors that are causing concern include the decline in manufacturing activity, the weakening of the housing market, and the ongoing inversion of the yield curve.
All of these factors point to a high risk of a recession in the near future.
While there are some who argue that the US economy is still strong and that a recession is not imminent, the evidence presented by Bank of America is compelling.
The twelve charts produced by Michael Hartnett paint a bleak picture of the US economy, and suggest that a recession may be just around the corner.
While it is impossible to predict exactly when a recession will occur, the evidence provided by Bank of America suggests that it may be sooner rather than later.
As such, it is important that policymakers and investors take steps to prepare for a possible recession, in order to minimize its impact and ensure a swift recovery.