Economist Slok Sees No U.S. Recession, ‘Benign’ Markets in 2020

The video discusses the current economic outlook, focusing on the possibility of a US recession, which seems unlikely at the moment. It highlights the role of low treasury yields in supporting asset prices and the risks associated with them. The discussion also covers the impact of corporate debt levels and the ongoing hunt for yield due to low risk-free rates. Finally, it touches on the influence of trade issues on market optimism and the potential for a phase one trade deal.

What is the current expectation regarding a US recession according to the transcript?

• A complete economic collapse is anticipated.

• A rapid economic growth is expected.

• A mild slowdown is anticipated.

• A severe recession is expected.

Why are treasury yields considered unsustainable according to the transcript?

• Due to low inflation and global yield hunting.

• Because of high inflation rates.

• Due to low unemployment rates.

• Because of high government spending.

What is a major concern related to corporate debt mentioned in the transcript?

• Corporate debt is not a concern.

• Corporate debt levels are decreasing.

• Corporate debt levels are stable.

• Corporate debt levels have swelled to concerning levels.

How do low risk-free rates affect investment behavior?

• They discourage investment in high-yield assets.

• They encourage investment in low-yield assets.

• They force investors to seek higher yields.

• They have no impact on investment behavior.

What is the anticipated outcome regarding trade mentioned in the transcript?

• A complete breakdown in trade negotiations.

• No changes in trade policies are expected.

• A phase one trade deal is expected to be signed.

• An increase in trade tariffs is anticipated.