Stock market crash is coming in 2023, even if US economy avoids recession

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Here's the six-word outlook for stocks in 2023: going to hell in a handbasket

An icon in the shape of a person's head and shoulders. It often indicates a user profile.It doesn't matter if the US economy goes into recession or not: The stock market — for the foreseeable future — is royally screwed.

On the economy side, the US is experiencing a violent bout of inflation created by the pandemic; pent-up demand collided with a lack of everything from workers to widgets. Like a swarm of locusts, inflation is eating up economic growth, pushing up prices and nullifying wage increases. But some of the pandemic-related conditions that got us here — like clogged supply chains — are normalizing.

"It doesn't matter whether it's technically a recession," one legendary fund manager told me."It's a bear market. We sit in the middle innings."The hangover the global economy is suffering through is a well-known story by now. Kicking the economy back into gear has been like starting an old car that had been left for years outside in the Saskatchewan snow.

How do I know this? Because Powell tells me every chance he gets. In fact, he's explicitly said he would rather hike rates too high and risk a recession than lower them too early and watch inflation stick.

 

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Probably Business Insider journalists will lose their jobs first, if stock market collapses.

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