BMO Economist Bell Is 'Risk On' as U.S. Recession Fears Are Overdone

The video discusses the global economic slowdown, highlighting the impact on earnings, particularly in the manufacturing and shipping sectors. Despite strong consumer confidence and earnings growth in the US and UK, companies are cautious, hoarding cash and reducing investments. The stock market's high expectations have led to a slowdown in earnings growth, with domestic profits squeezed by wage rises. The fear of recession is considered overdone, but potential inflation and interest rate changes pose risks to the market.

What are the implications of companies hoarding cash instead of investing?

What potential challenges could arise from a revival of inflation fears?