JP Morgan Says Biggest Risk to the Market in 2025 is NO Recession At All?!

Is a recession the only thing standing between you and market gains? You might be surprised. According to JP Morgan, the biggest risk to the market in 2025 might be the absence of a recession. While many investors are still bracing for an economic downturn, J.P. Morgans U.S. chief economist is no longer forecasting a recession during 2025 because Q3 data is indicating healthy economic growth.

Why is No Recession a Risk?

It sounds counterintuitive, right? Shouldn\'t a healthy economy be good for the market? Markets Insider reported JP Morgan Strategist, Mike Bell, stating that the biggest risk to the market in 2025 is if there is no recession after all. As the economy has, this perspective challenges conventional wisdom. Mike Bell, global market strategist at JPMorgan Asset Management, explains why the US avoiding a recessing this year is a risk to markets on “Bloomberg Surveillance.” (Source: Bloomberg)

The Lingering Recession Fears

Halfway into 2025, many investors remain worried about a looming recession. Coupled with still-high inflation and stresses to the banking system, it can be hard to shake the feeling that a downturn is inevitable. The firm now expects real GDP. But what if those fears are unfounded? What are the implications of continued growth in the face of persistent inflation?

J.P. Morgan\'s Perspective: A Deeper Dive

J.P. Morgan\'s shift in perspective highlights the complexities of the current economic landscape. Understanding why they see a "no recession" scenario as a potential risk is crucial for investors navigating these uncertain times. Stay informed and consider all possible market scenarios.