According to the Chief Executive of the financial advisory firm Longview Economics, the most recent economic data in the United States suggests that a recession is on the way, and investors may need to be ready for some pain in the stock market.

Chris Watling told CNBC’s “Squawk Box Europe” on Friday that he thought a recession was coming because of leading economic indicators that were “pretty compelling” and “brutally bad.”

Recession On the Way

The Leading Economic Index for the United States decreased by 1.2 percent in March, reaching its lowest level since November 2020, according to the Conference Board on Thursday. It appeared from the data that economic weakness might soon get worse and affect the entire U.S. economy.

According to Watling, the normal period for a recession following an inversion of the Treasury yield curve, which initially inverted in March 2022 and then again in the weeks and months that followed, was one year. Each time this has happened, the United States has had a recession. As a consequence, I am confident that it is on its way. Watling explained, “It’s just a timing issue.”

While numerous financial specialists have cautioned of an approaching downturn, the Worldwide Money-related Asset recommended barely a week ago that it had been shocked by the new strength of the U.S. work market and buyer spending.

In its most recent World Economic Outlook report, which was released on April 11, the International Monetary Fund predicted that the world’s largest economy would expand by 1.6% this year, up from the 1% expected in 2022.

The IMF’s first deputy managing director, Gita Gopinath, told CNBC‘s Joumanna Bercetche last week that the fund had reason to believe the U.S. economy could avoid a recession due to signs of cooling inflation data. She added, however, that a so-called hard landing remained “within the realm of possibilities.”

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