‘The economy is defying gravity’: The no-recession trade is to buy high-yield bonds, JPMorgan portfolio manager says

• “The economy is defying gravity” after third-quarter GDP approached 5%, according to JPMorgan portfolio manager Phil Camporeale.
• Camporeale said that the three tell-tale signs of a recession are nowhere to be found.
• If no recession materializes, as Camporeale expects, then investors should buy high-yield bonds.

The recession everyone’s been waiting for over the past 18 months isn’t coming anytime soon after the release of third-quarter GDP data, according to JPMorgan portfolio manager Phil Camporeale.

The US economy posted third-quarter GDP growth of 4.9%, representing its strongest quarterly growth since late 2021, and that’s after multiple quarters of above-trend growth.