Even as the probability of a recession in the near term remains low, we believe investors should look to sectors that are likely to be resilient in periods of higher volatility. One area in which we see a potential opportunity is U.S. housing, where fundamentals remain sound. Demand is outpacing supply, and it remains cheaper to buy a home than to rent one (see chart).
Furthermore, while recession risks have risen, we don't see the same kind of imbalances in the real economy that we have seen in previous recessions: There is no over-borrowing, over-consumption