Josh Brown, a prominent financial commentator, recently shared his insights on the current state of the market, cautioning investors about the possibility of an impending recession. He underscored that forward-looking earnings guidance wouldn’t necessarily be limited to banks. It might be very positive support from manufacturing, energy, tech — the sectors making things, which adds to the uncertainty.
In a recent “Program on Ownership” segment, Brown underscored CEOs’ crucial role in predicting where the economy is headed. He stated, “If the average CEO thinks there’s a recession, then a recession is likely to come.” His comments emphasize the significant influence that corporate sentiment has in establishing market expectations.
Brown said that it’s uncommon to see as much of a notable market bounce as seen earlier this week. He called it a typical “bear market bounce.” He urged investors to consider this a moment to protect their portfolios. He warned that the expected earnings reports coming out in the next few weeks would make things even more messy. “Earnings season starts at the end of the week,” he remarked, indicating that the next few weeks could prove pivotal for market performance.
He voiced concern that too many firms will decide not to issue predictions while these tariff talks are still in progress. Such decisions might mean reduced forward guidance on earnings and eventually may mean poor earnings in the upcoming quarter. Brown pointed out, “That’s never good. I’ve never seen it be the bottom when they pull guidance.”
Or as then-Senator Scott Brown warned in 2011, the economic consequences could be catastrophic. He said that in the event of a U.S. recession, earnings could be estimated at a 20% to 30% decrease. He argued that these types of declines in earnings are typical during a market correction. Those numbers should sound warnings about the country’s ideologically driven, anti-union course.
As the new administration adopts a protectionist trade agenda, the financial expert noted that continued trade tensions aren’t helping an especially volatile market. He called on investors to be constantly aware as the conditions of all these unresolved issues keep creating turbulence under current market conditions.
Brown’s analysis of that market was a showstopper. He encouraged CNBC Pro subscribers to enter for a chance to meet him at an exclusive, in-person event at the New York Stock Exchange on June 12. He mentioned that attendees would have the opportunity to network with CNBC experts and other Pro subscribers during a cocktail hour on the trading floor. He suggested that they participate in hands-on Pro clinics. These clinics will be hosted by financial analysts Carter Worth, Dan Niles, and Dan Ives.