: Keep calm — there’s no recession on the way. These 13 stocks may rise as investors figure this out

by | May 14, 2022 | Stock Market

A so-called hard landing of the U.S. economy is not going to happen. It’s a false fear. We may have a bumpy landing, but the odds of hard landing — a possible recession — are low for the reasons below. If I am right, it confirms what extremely negative sentiment is already telling us: Stocks are a buy.

I also suggest several stocks, below, that artificial intelligence tells us may be among the best performers, as investors figure out recession risk is low.1. The economy is strong That 1.4% first-quarter GDP contraction is pretty misleading. It was caused by a drop in federal spending and a big increase in the trade deficit. Two more meaningful measures show decent economic strength, says Ed Yardeni of Yardeni Research. He cites the 3.7% increase in final sales to private domestic buyers. Real personal consumption spending also rose to a record. We see signs of global strength, too. Excluding China, global services and industry purchasing managers indices came in at around 55 for April. Below 50 signals economic weakness, so this is a decent reading. “The global economy is weathering the near-term headwinds relatively well,” say economists at JPMorgan. They expect 2% global GDP growth in the second quarter.2. The yield curve i …

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