Not your average bear market, analyst says

"We would urge caution for investors attempting to call the bottom in the current environment," a Merrill strategist wrote.
JUN 23, 2008
By  Bloomberg
Rising food and energy costs, an ailing financial sector and a hobbled consumer are evidence that the economy has a "worse-than-average recession" and potentially the worst economic decline in more than three decades, wrote Brian Belski, U.S. sector strategist at Merrill Lynch & Co. Inc. in New York. ``This is not your average recession,'' he wrote. ``We would urge caution for investors attempting to call the bottom in the current environment.'' Mr. Belski noted that the economy has always relied heavily on the consumer, and found: "It is hard to believe that the current economic slowdown will be an 'average' recession as the consumer continues to weaken." Household net worth has crossed into negative territory for the first time since the 2001 recession, Mr. Belski said. He also noted that there are several parallels to the recession that took place between 1973 and 1975, such as higher oil prices, increased food costs and a weak dollar.

Latest News

401(k) savings rate at new record high but balances are down slightly
401(k) savings rate at new record high but balances are down slightly

Quarterly analysis of retirement accounts highlights positive behavior.

JPMorgan mulls new asset lending scheme aimed at crypto ETF investors
JPMorgan mulls new asset lending scheme aimed at crypto ETF investors

Insiders say the Wall Street giant is looking to let clients count certain crypto holdings as collateral or, in some cases, assets in their overall net worth.

Fintech bytes: Future Capital adds RayJay alum to C-suite, Advyzon welcomes ex-Envestnet leader
Fintech bytes: Future Capital adds RayJay alum to C-suite, Advyzon welcomes ex-Envestnet leader

The two wealth tech firms are bolstering their leadership as they take differing paths towards growth and improved advisor services.

UBS 'wrongfully' fired Idaho advisor in 2021: FINRA panel
UBS 'wrongfully' fired Idaho advisor in 2021: FINRA panel

“We think this happened because of Anderson’s age and that he was possibly leaving,” said the advisor’s attorney.

Cetera Trust hires Fidelity vet Kerri Scharr for chief fiduciary officer role
Cetera Trust hires Fidelity vet Kerri Scharr for chief fiduciary officer role

The newly appointed leader will be responsible for overseeing fiduciary governance, regulatory compliance, and risk management at Cetera's trust services company.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave

SPONSORED The evolution of private credit

From direct lending to asset-based finance to commercial real estate debt.