Warning: U.S. Consumer Approaching Cliff Edge, Experts Say

The U.S. consumer is facing challenges as economic indicators show a depletion of excess cash and negative real income growth, warns Chris Watling, CEO of Longview Economics. Despite a projected strong GDP growth for the third quarter, concerns remain about the longer-term economic outlook and the potential for a recession. Watling predicts that the labor market will deteriorate in the coming months, which could kickstart a recession. He suggests that the stock market is struggling to find direction and advises being underweight equities in the long term.