Mixed Signals: Conflicting Views on Whether a Recession is Imminent or Not

Despite repeated warnings of an impending recession, investors are still buying stocks at valuations well above historic norms, according to Darrel Cronk, president of Wells Fargo Investment Institute. Cronk argues that the evidence remains overwhelming that a “recession is at our doorstep,” with much of the manufacturing sector already in recessionary territory. Sameer Samana, Wells Fargo Institute’s senior equity strategist, believes investors aren’t properly pricing in this still gloomy economic outlook amid enthusiasm over the latest developments in artificial intelligence and fading inflation.