Current market signs point to a mild recession: Strategist

The Nasdaq Composite (^IXIC) and the S&P 500 (^GSPC) closed at new record levels on Tuesday as Nvidia (NVDA) overtook Microsoft (MSFT) as the world's largest company.

Insigneo Chief Investment Officer Ahmed Riesgo joins Market Domination Overtime to give insight into why he believes that despite record numbers in the stock market, a recession will hit sooner than later.

"This year, we think just as everyone is coming over to the no recession side, the soft landing side, we think the chances of recession are much higher not only than Wall Street expects, but that is currently being priced in by markets," Riesgo explains. "So we don't think it's a done deal that a recession happens in late 2024, early 2025. But we do have a lot of warning signs that things are deteriorating rather rapidly, especially in the labor market."

He later adds, discussing the current situation with consumers: "We see that the consumer is starting to behave as their wallet is getting pinched. This is something that many people expected to happen last year. It didn't happen because those US excess savings were quite large, but we're finally starting to see it come in. And if you couple that with deteriorating labor demand, which eventually will lead to layoffs, it doesn't look good as far as a US recession is concerned."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Nicholas Jacobino