The US recession will officially come to an end in September and employment will turn positive, but stock market investors are ahead of themselves and should expect a correction, David Wyss, global chief economist at Standard & Poor's, told CNBC Monday.
“We’re starting to come out of this and I think by September it’ll be turning around and we’ll see positive job growth,” Wyss said.
Wyss described the shape of the coming recovery as a “lazy U.” He sees the economy “bouncing along the bottom” for some time yet, “because there are just so many imbalances that have to be cleaned up.”
Along with the improving employment picture, Wyss points out that the housing market is showing signs of recovery with both home sales and starts having bottomed out. And GDP is also starting to turn around, he added.
Even though the economic picture appears to be improving, Wyss warns investors or stock market weakness ahead.
“Markets are ahead of themselves as usual. I think we probably will see a correction,” Wyss said.
“The market leads the economy by 5 or 6 months and it looks to me that we’re probably going to have a August, September bottom,” he added.
- Watch the full interview with David Wyss above.
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