Lots More on Why Neil Dutta Is Sticking With His Recession Call

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Odd Lots 14 min 6 speakers 8 chapters transcribed 1 month ago
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How did President Trump's tariff pause and reversal spark market volatility?

Jason Kelly 0:00
Have you ever wondered how Jesse Cole took the Savannah bananas from this? We
Alex Rodriguez 0:04
had a six million dollar failure last year. We're gonna have bigger ones as we go. To this, we've got shareholders, investors I've reached out to us regularly, and the answer is always no. Or why L Duncan would say this about a Netflix sports broadcast.
Scarlett Fu 0:17
Sometimes we're gonna take really big swings and we're gonna freaking whiff.
Alex Rodriguez 0:20
Then the deal is the show for you. It's a Bloomberg podcast hosted by me, Alex Rodriguez. And me, Jason Kelly.
Jason Kelly 0:27
We talk to the biggest names in the world of sports and business, including NBA Hall of Famer Tracy McGrady, on one of his biggest blunders. I think I've created some magical.
Alex Rodriguez 0:38
Mm-hmm.
Jason Kelly 0:39
Well I struck out. And you'll even get some of my baseball hot takes. I've had owners tell me it doesn't matter, the game has to be fixed, it's broken. If we have to lock out the whole year, we will.
Alex Rodriguez 0:50
New episodes air every Thursday. Don't miss out.
Scarlett Fu 1:02
Bloomberg Audio Studios, Podcasts,
Joe Weisenthal 1:05
Radio, News. What do you think? Recession or no recession?
Tracy Alloway 1:10
I mean You had a really good piece out this week in the newsletter where you made the point, and I had made a similar point the day earlier. So maybe I'm not being so nice, but like how much of all the market action, all the economic action, I guess, was actually dependent on just one guy, Donald Trump. And that, you know, if he came out and said something, he could end the chaos at any moment in time. And then on Wednesday he actually came out and did that. And then Kind of. Kind of.

Why does Neil Dutta believe a recession is still likely despite the tariff news?

Tracy Alloway 1:41
Kind of. Well, so your point was Well now, so look.
Neil Dutta 1:45
Yeah.
Tracy Alloway 1:45
If he does that, we can all go back to worrying about like a slowdown in the labor market or deep seek threatening AI, which so much capital investment in the US actually depends on.
Joe Weisenthal 1:57
There's a lot. I did a deadlift.
Tracy Alloway 2:02
I'm both the most popular trader and most successful trader at Citadel.
Joe Weisenthal 2:06
Feta's going viral.
Tracy Alloway 2:08
Uh barges.
Joe Weisenthal 2:09
This is an after school special, except
Tracy Alloway 2:10
I've decided I'm gonna base my entire personality going forward on campaigning for a strategic pork reserve in the US. Black gold! These are the the important questions. Is it robots taking over the world? No, I think. No, I
Joe Weisenthal 2:21
think that like in a couple years the AI will do a really good job of making the Outlaws podcast. One day that person will have the mandate of heaven.
Tracy Alloway 2:30
How do I get more popular and successful?
Joe Weisenthal 2:32
We do have the perfect guest. Welcome to Lots More, where we catch up with friends about what's going on right now.
Tracy Alloway 2:40
Because even when oddlots is over, there's always lots more.
Joe Weisenthal 2:44
And we really do have the perfect guest. You know who had a really good contribution to the Outlaw's newsletter? February twenty twenty-fourth. Basically, the market top. Neil Dutta sees rising risks to the labor market, calling recession risks right then, essentially at the market top. We got him back on. Neil, yesterday after Trump walked it back, by the way, we're talking to Neil Dutta of Renaissance Macro, Trump walked back some of the tariffs.

What are the rising risks to the U.S. labor market that could trigger a downturn?

Joe Weisenthal 3:11
Goldman pulled its recession call. You sent out an email right away. You said, I'm sticking with my recession call. Why do you see recession in the cards? In 2025 still.
Neil Dutta 3:21
So remember that, you know, for me it's it's not really about An NBER defined recession. Like that to me is not the name of the game. The name of the game is trying to translate an economic view into a market call. And Even if it's not technically a recession. It might as well be because The underlying problem for the market. is not going away. And that's the issue. You know, all the things I mentioned in that newsletter you you uh highlighted in February, that's all here. That's still here, right? We still have a situation where labor incomes are slowing and the Fed's not budging. We still have a situation where mortgage rates are high and the housing market is weak. And we still have state and local governments cutting back.
Neil Dutta 4:10
And we still have a pretty high volume on trade. I mean, in terms of tensions, just because we Dialed it back a little bit yesterday doesn't mean that the tensions are not still high.

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