Chances unlikely of the economy collapsing this year


Experts say there’s almost no chance of a recession this year.

Issues with Iran, the impeachment proceedings and election will be short-term volatility points that are unlikely to have a marginal effect on the market.

STA Wealth Management President Michael Smith said just because this is the longest running business cycle doesn't mean we're due for a recession.

The start of a recession would look like:

"We see the Fed raise interest rates, and start backing off and pulling money in and contracting the money supply, then that will be like 2018. Remember the fourth quarter? The S&P was down almost 20 percent, and, that was the reason why," said Smith.

He said consumer sentiment is stronger than it's been in many years.

"A stable currency and anything with a yield or that can be stable in price and that's going to be US assets, stocks, bonds, real estates, et ceteras," said Smith.

He said as long as money is flowing fluid, the chances of a recession are probably minimal. The Federal Reserve, European Central Bank, Japanese Central Bank and central banks are being created and pumping liquidity into the economy.


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