Premature to turn bearish based on Covid omicron fears: Stifel

Premature to turn bearish based on Covid omicron fears: Stifel

Whereas Wall Road is on alert as a brand new Covid-19 variant spreads, Stifel’s chief economist is hesitant to change her financial outlook.

Lindsey Piegza sees lockdown dangers tied to omicron, however she suggests it is too untimely to downgrade forecasts based on them.

“If in fact the variant comes into play and we see very tight policies broad based across the country, we could be talking about a second round recession,” she advised CNBC’s “Trading Nation” on Monday. “On the flip side, if policymakers allow the variant to work its course, we could actually see the recovery fare relatively well through the end of the year and into 2022.”

For now, it seems the US has each intention of holding the economic system open. Throughout a Monday information convention, President Joe Biden indicated the U.S. had no plans to add new journey restrictions to cease the unfold.

“I’m cautiously optimistic at this point. Right now, we are seeing the economy on very steady footing,” Piegza mentioned. “We do assume that to be carried through the end of the year.”

2022 could also be when the backdrop will get tougher, in accordance to Piegza. She cites the continuing discount in fiscal stimulus as a significant component.

“Even with a solid consumer, we do expect [GDP] growth to slow down to about 2%,” Piegza mentioned. “Growth is still positive, but it’s still very fragile. There’s a number of risks that remain. And, as we continue to see inflation eat into that nominal growth, that’s putting us on a much more uneasy pathway.”

Disclaimer

Source link

Regeneron, Moderna, Dollar Tree and more Previous post Regeneron, Moderna, Dollar Tree and more
Ray Dalio says cash is not a safe place right now despite heightened market volatility Next post Ray Dalio says cash is not a safe place right now despite heightened market volatility