Finding The Upside In Down

Signs of an economic downturn are increasing.

Equity markets have had their worst six months since the financial crisis. The S&P 500 has fallen 20%, and the NASDAQ is down 30%. Bond yields have widened, and the financing markets have become significantly more constrained.

Commodity and transport prices, which had heralded inflationary spikes and an overheating economy last year, are now at 52-week lows, suggesting shrinking demand and a probable economic slowdown.

In our 17th annual survey of the world's leading restructuring experts – those professionals most experienced in responding to the downside of economic volatility – 87% expect a recession in the next 12 months, with 1 in 4 expecting it before the end of the calendar year.