Investors are worried about the US-China trade war and whether or not the Federal Reserve should cut interest rates. But the biggest challenge for the United States is its dwindling working population.
"Baby boomers are retiring by the millions," David Kelly, chief global strategist at J.P. Morgan Funds told CNN's Alison Kosik on the digital live show Markets Now. But legal immigration could help solve that problem.
Reducing legal immigration in the face of this trend could hurt the economy.
In fact, Kelly argued that the United States should increase legal immigrants in the years to come to offset a shortage of workers.
Overall Kelly is positive about the status of the US economy, although he does believe it's slowing.
"I think we will avoid a recession," Kelly said, "unless we do something else wrong."
Consumer spending is strong enough to offset weakness in the manufacturing sector, and "there's no boom to go bust," he said.