Wall Street is becoming increasingly concerned about a recession. According to Goldman Sachs CEO David Solomon, there is “probably a 30% chance of a recession as you look forward to the next 12 to 24 months.”
We are also starting to see a slowdown in the housing market with new home sales dropping by 16.6% which was worse than expected. The ISM New Orders Index has also weakened from above 60 at the start of the year to 53.5 in April. There is also weakness developing in cyclical stocks such as trucking, consumer discretionary, and big-box retailers as investors are increasingly concerned about growth.
