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UBS CEO: US Recession Still Unlikely, Slowdown Possible

Subtle Market Shifts Signal Potential Slowdown

In a recent interview, UBS CEO Sergio Ermotti expressed his belief that it is too early to predict a US recession. However, he acknowledged the possibility of an economic slowdown, citing recent market volatility as a potential indicator.

Volatile Markets May Hint at Economic Weakness

Ermotti noted that market volatility, particularly in the second half of the year, could intensify. This volatility could be a sign of underlying economic fragility and could contribute to a slowdown in growth.

Ermotti also highlighted the importance of last week's global selloff, which he believes should serve as a wake-up call to investors. He emphasized the need for investors to be prepared for potential economic challenges.

Slowdown Doesn't Necessarily Equal Recession

It is important to note that, according to Ermotti, a slowdown does not necessarily mean a recession. A slowdown typically refers to a period of reduced economic growth, while a recession is defined as a prolonged decline in economic activity.

While Ermotti believes a recession is unlikely at this time, he cautions that a slowdown could still have significant implications for businesses and individuals. He urges investors to remain vigilant and to monitor economic indicators closely.