Citi's Wieting: Next Recession Will Come Before 2020

Tuesday, 12 Aug 2014 07:56 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The economy has been in recovery mode for more than five years now, and some analysts grew quite enthusiastic after news of the 4 percent expansion in GDP during the second quarter.

But Steven Wieting, global chief strategist for Citi Private Bank, says you can hold the confetti.

"I hear more and more that this is going to be an endless bull market that there are no cyclical downturns," he tells CNBC. "I think the evidence we've had this year is that, in fact, we have a finite recovery."

Editor’s Note:
Retire 10 Years Earlier With These 4 Stocks


Wieting predicts the economy will endure another recession before the "decade is out."

When it comes to stocks, "I don't have a problem with the equity market level per se, but the amount of confidence that we're in a smooth path has been a problem," he argues.

Wieting points to the danger that turmoil in the Mideast and Ukraine presents for the market. "These are things we don't look through."

Still, underlying fundamentals remain strong for stocks, he notes.

"Earnings are rising, bond valuations are very high and markets can make progress after this [international uncertainty]."

As for the economy, it hasn't been quite right even pre-dating the 2007-09 financial crisis, says Harvard economist Larry Summers.

"It has been a long time since the American economy has grown rapidly in a financially sustainable way," he tells the New Republic magazine. The Federal Reserve's low-interest-rate policy hasn't been enough to keep savings from exceeding investment, Summers notes.

Editor’s Note: Retire 10 Years Earlier With These 4 Stocks

Related Stories:

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Harvard Study: Treasury, Fed Tactics Clashed During Crisis

Tuesday, 30 Sep 2014 13:10 PM

Policies pursued by the U.S. Treasury during the 2007-2009 financial crisis undercut the Federal Reserve's efforts to st . . .

Murdoch's News Corp. to Buy Parent of Realtor.Com for $950 Million

Tuesday, 30 Sep 2014 10:07 AM

News Corp. is spending about $950 million to buy the online real estate business Move Inc. in a deal that aims to speed  . . .

Steve Case: eBay's Split With PayPal Could Make Both Takeover Targets

Tuesday, 30 Sep 2014 12:36 PM

After months of prodding by activist investor Carl Icahn, eBay has decided to split PayPal and the rest of the company i . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved