Two the Point — Investing During an Economic Slowdown

Market Insights in Two Minutes — We’re excited to debut our new weekly video series highlighting one observation we think is most important regarding the economy and the financial markets going forward. This week we focus on investing during an economic slowdown.

Watch now to find out how we think investors may navigate an economic slowdown.

We believe the economy will begin to noticeably slow in the second quarter. How do we know? One key input is housing data. The below housing investment indicator has forecasted, with a 12-month lead, EVERY downturn in the U.S. economy since 1960.

As the pace of economic growth starts to slow, investors will search for companies that can maintain profitability and earnings growth. Particularly after a very poor start to 2022, we believe this creates an opportunity in less economically sensitive Growth stocks.

Source: Piper Sandler Macro Research.
Source: Piper Sandler Macro Research.

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