Why risk of US recession is years - not months - away

Despite sluggish earnings growth, gloomy forecasts for global growth and a noticeable apathy towards equities on the part of so many investors, US equities are not looking too bad, according to JPMAM's Christian Preussner.

Investors' risk appetite has returned to some extent on the back of a solid second quarter earnings season and stronger economic data. In 2016, volatility in the market prompted US equities investors to focus on stocks seen as the least risky, in defensive sectors such as utilities and telecoms. Simultaneously, companies with relatively stable businesses and paying dividends have been rewarded by yield-hungry investors. After all, a stunning 65% of the stocks in the S&P 500 now yield more than a 10-year treasury bond. The three key factors still driving US equities As the S&P 50...