The U.S.’s Nasdaq composite declined by around 7.9 percent in January, although sharp gains on Friday pushed the tech-focused index into positive territory for the week, along with the Dow Jones industrial average and the S&P 500 index.
Bradshaw said that markets were putting a too-low probability on U.S. growth reaching 2-2.5 percent in 2016.
“If you look at the data, clearly there are clouds on the horizon. It’s not certain, but to me, we don’t deserve to be pricing in that much recession risk. So I would argue that now is the time to actually focus on valuations, understand the technical factors that are cheapening these markets, which are in part to do with people liquidating their assets, and actually be a bit of a contrarian investor,” he told CNBC.
On Monday, Oxford Economic said that some indicators, such as declining industrial activity in the G-7 economies, suggested a “moderate” risk of a global recession. However, the research firm highlighted that indicators such as this, and others such as equity market slumps, could overstate the risk of recession.
After all, Nobel Prize-winning economist, Paul Samuelson, famously said that stock markets had predicted nine out of the last five recessions.