Equity Benchmarks: Guggenheim Investments and Policy Tools

equity benchmarks: They said a lack of pent-up problems in the housing market and a well-capitalized banking system mean the economy is more resilient, according to Market Watch. That should be welcome news for risk assets, in the wake of March's inversion of the yield curve an apparent harbinger of coming recessions, closely watched by Wall Street types and economists. The bad news is that the stock market is still likely to suffer a savage beatdown as an economic downturn sets in as early as 2020. However, despite a relatively soft landing for the economy, equity benchmarks are likely to see a severe slump, partly due to lofty valuations and a lack of available fiscal and monetary policy tools, analysts at Guggenheim Investments led by Scott Minerd wrote in a Tuesday research note. Our work shows that when recessions hit, the severity of the downturn has a relatively minor impact on the magnitude of the associated bear market in stocks, they said. See With Fed's cards on the table, not a bad time' to take profits, advises Guggenheim's Minerd Guggenheim says the level of equity valuations going into the recession generally dictates the potential magnitude of the slide in stocks, sometimes more than other standard economic metrics. (news.financializer.com). As reported in the news.