Story perspectives

Investors Bullish as Recession Fears Plummet to 28%

6/9/2025

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Summary

Story summary

Investors are optimistic about US economic growth, with recession risk appearing low, per The Leuthold Group.
The S&P 500 Cyclical/Defensive Ratio hit a record 1.19, reflecting a 19% premium for cyclical stocks.
Recession fears have dropped from 66% to 28%, yet remain above the long-term average of 15%.
Current valuations of cyclical stocks suggest no imminent recession, contrasting historical trends.
Defensive stocks could recover if recession concerns resurface, affecting those heavily invested in cyclicals.

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Story summary

Investors are optimistic about US economic growth, with recession risk appearing low, per The Leuthold Group.
The S&P 500 Cyclical/Defensive Ratio hit a record 1.19, reflecting a 19% premium for cyclical stocks.
Recession fears have dropped from 66% to 28%, yet remain above the long-term average of 15%.
Current valuations of cyclical stocks suggest no imminent recession, contrasting historical trends.
Defensive stocks could recover if recession concerns resurface, affecting those heavily invested in cyclicals.