MRB on CNBC – August 28, 2019
MRB Partners strategist Prajakta Bhide thinks recessionary fears may be overblown. “The yield curve’s inversion this year is a symptom of external growth stress and powerful distortions in global bond yields and does not reflect restrictive Fed policy,” she said in a note. “Thus, it does not warrant a bearish economic interpretation.”
“Even if the inverted yield curve captures investor’s uncertainty about worsening global growth … a balanced perspective would still suggest that the odds of a recession in the next 12 months are no higher than 20%,” Bhide added.