Stock Market Will Get Worse In 2023 Before It Gets Better, JPMorgan Says

JPMorgan Chase analysts predicted in a Thursday note, despite a steady pace of mildly encouraging data indicating softening inflation and an impending slowdown in the Federal Reserve’s most aggressive tactics in recent weeks.The JPMorgan team, led by Dubravko Lakos-Bujas, wrote it expects the S&P 500 to “re-test this year’s lows” in the first half of 2023, implying a 14% decline for the S&P from its Thursday level.

The bank cited a “proverbial snowball” of high borrowing costs, a deterioration in consumer savings and a rise in unemployment will contribute to the market’s poor start. But that stream of bad news should then inspire a Fed pivot to lower interest rates, according to JPMorgan, predicting the S&P will end next year at 4,200, a modest 3.6% gain from where it currently stands.

Several other banks also expect a tepid beginning to 2023 for the market, with UBS strategists predicting last month a “base-case” scenario of 3,700 for the S&P by next June, implying 9% downside, while Goldman Sachs analysts noted Monday the market is currently baking in only an 11% chance of a recession over the next year, compared to a 39% probability in Goldman’s market-based recession model.

Predictably, all eyes will continue to be on the Fed, which is largely expected to raise the federal funds rate a further 100 basis points in coming months, with JPMorgan analysts writing their forecast “largely depend[s] on the depth and length of the recession and the speed of the Fed’s counter-response.

Which means the opposite if you’re a contrarian

🪙 Binance

Or not

Ink ran out :)

Österreich Neuesten Nachrichten, Österreich Schlagzeilen

Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.

Stock Market Will Get Worse In 2023 Before It Gets Better, JPMorgan SaysThe S&P 500 could decline as much as 14% by the first half of next year, according to JPMorgan analysts. As Planned ☆☆☆ That's a great opportunity for new investors
Herkunft: Forbes - 🏆 394. / 53 Weiterlesen »

Stock Market Today: Dow Gains Over 700 Points After Fed Chair Powell's SpeechStocks rallied, with the Dow rising more than 700 points to exit a bear market
Herkunft: WSJ - 🏆 98. / 63 Weiterlesen »

Stock Market Today: What to WatchU.S. stock futures wobbled Thursday, pointing to a pause in the market rally that propelled the Dow Jones Industrial Average into a new bull market a day earlier people
Herkunft: WSJ - 🏆 98. / 63 Weiterlesen »

5 things to know before the stock market opens ThursdayHere are the most important news items that investors need to start their trading day. do all the contrary, don't follow any dis or misinformation from the so-called experts!!
Herkunft: CNBC - 🏆 12. / 72 Weiterlesen »

BMO's Brian Belski sees modest stock-market gains in 2023 on hopes of a tame recessionThe Canadian bank's strategist sees small gains for stocks next year, borne of a belief that the U.S. may only see a mild recession and few Fed rate hikes. Will the economy improve from the middle of next year?
Herkunft: CNBC - 🏆 12. / 72 Weiterlesen »