Why the U.S. Economy Will Avert Recession

Barron's Editor Jack Otter joins Shelby Holliday to preview the latest issue predicting the U.S. will weather economic turbulence. Plus, why strategists are adjusting their 2016 market forecasts.

JACK OTTER: It's been an ugly year. And a lot of people think either we're headed for recession or we may already be in a recession. We just don't know it yet. I would say we're worried, but Barron's comes out on the optimistic side and says we're going to survive this wave. We're going to get through this without going into recession.

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In every recession since World War II, we've seen at least three months of the unemployment rate going up before the recession. Of course, we haven't seen that. The labor market hasn't been as great as we'd all like, but it's been getting tighter and tighter and tighter. And he [Gene Epstein] thinks that will lead to a virtuous circle where more people are making more money, buying more stuff from businesses, the businesses finally start investing. That's been one of the problems for eight years here has been not enough capital expenditures. But he thinks that will finally happen.