The Producer Price Index (PPI) unexpectedly dropped in May, signaling cooling inflation. However, Northwestern Mutual Wealth Management chief investment officer Brent Schutte believes the economy is still on track for a recession and joins Morning Brief to lay out his case. "I think investors are discounting too easy of a process. They think miraculously inflation is going to come down without causing or having the economy slow too much to cause a recession. They think the Fed is going to be able to miraculously cut rates and keep a slowing economy from moving toward a recession," Schutte says. He believes that a recession is the most likely outcome, pointing to the low-end consumer already under pressure from credit card and auto loan debts. Schutte explains that the current market is bifurcated: "While the S&P is up, every other part of the market is down. And the S&P has been driven by the 'Mag Seven,' which are up 17% while the rest of the S&P 493 names are actually down 2%." He adds, "I think there's opportunities for investors. Unfortunately, they're not in places that people are looking right now." #youtube #news #news About Yahoo Finance: Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life. - Get the latest news and data at finance.yahoo.com - Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO) - Follow Yahoo Finance on social: X: http://twitter.com/YahooFinance Instagram: https://www.instagram.com/yahoofinance/?hl=en TikTok: https://www.tiktok.com/@yahoofinance?lang=en Facebook: https://www.facebook.com/yahoofinance/ LinkedIn: https://www.linkedin.com/company/yahoo-finance