STORY: “Investors really would be wise to curb their enthusiasm and, you know, be cautious in terms of looking for those companies that can ride out any bumps that may come along the way next year,” says Krawez.
“While everyone’s sort of convinced that the Fed has engineered a soft landing, the reality is soft landings are actually really rare. And so, they’re still, in our view, you know, heightened chances of a recession occurring. The other two things are: you’ve got geopolitical risk, which seems to have been shoved onto the back burner, but you’ve got a lot going on in the Middle East. You’ve got the Ukraine situation, and the incoming administration is going to have to deal with both of those. And so that’s going to create potential volatility. And then finally, just the incoming administration itself, there is some risk around policy changes. But regardless of who won the election, the reality is debt is going to be a problem over the next five, six years. You’ve got debt to GDP at historic levels and you’ve got large deficits.”
