Recession fears persist on Wall Street despite the Federal Reserve's recent 50 basis point interest rate cut. To share his recession outlook amid this uncertainty, Saxo Bank Chief Global Equity Strategist Peter Garnry joins Morning Brief.

Garnry describes the current market situation as "a tipping point." He predicts that the broader market will outperform mega-cap stocks as interest rates continue to decrease. Based on historical trends, Garnry notes most rate-cutting cycles lead to an "immediate positive path," suggesting "the US recession possibility is still low." He advises investors to reassess and adjust their portfolios to align with this expected downward trend in rates.

"You can track an economy across a wide range of indicators," Garnry explains to Yahoo Finance. He adds: "What I've been saying for many years is that we've had a very unusual cycle since the pandemic and you can pick ten indicators very quickly that show you 'oh we're going into a recession.' But I can very quickly also show you and find ten indicators that are showing things are going okay."

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Angel Smith