Stock market could plunge another 24% next year, Bank of America warns

Revere Securities non-executive chairman Kyle Wool discusses whether the Fed will continue to aggressively hike rates at December's FOMC meeting on 'Varney & Co.'is not out of the woods yet and could face further volatility next year as a result of the Federal Reserve's quantitative tightening, according to Bank of America strategists.

In an analyst note this week, the analysts led by Savita Subramanian warned the Fed's shrinking of its balance sheet could fuel liquidity risks in different areas of the market. Bank of America projected a base-case scenario of flat returns in 2023, with the S&P 500 finishing the year at 4,000 – up just 0.9% from Monday's close.

But it warned of major volatility in the market throughout the year and said that in a so-called bear-case scenario, the S&P benchmark index could tumble another 24% from current levels to 3,000. Jerome Powell, chairman of the U.S. Federal Reserve, arrives to speak during a news conference following a Federal Open Market Committee meeting in Washington, D.C., on Sept. 21, 2022.The uncertainty stems from the "unprecedented leverage risk" in governments and central banks, which could lead to liquidity risks popping up in "odd places" as the Federal Reserve reduces its roughly $8.6 trillion balance sheet at a pace of $95 billion a month.

yawn

Check its record!

🇵🇱🇺🇦 Ukrainian refugees have caused a record increase in the incidence of HIV in Poland. It is reported by Wirtualna Polska. “In October, 1910 new cases of HIV infection were detected. There have never been such alarming statistics in the country,” the newspaper writes.

What is going on

FJB

Or it could rise 24% next year. My prediction is as sound as yours.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bank of America CEO predicts two years of pain ahead in the housing market | CNN BusinessThe CEO of one of the nation’s largest banks is preparing for an economic downturn in 2023. But he’s also hopeful that the likely recession will be brief and “mild.” The IR has arrested Arash_Sadeghi just because he was the voice of less-known innocent political prisoners. Arash is in a critical life threatening condition. The IR intends to kill him in silence. Be Arash's voice. مهسا_امینی MahsaAmini IranRevoIution I'm old enough to remember when Poopy Pants Joe said inflation would be transitional...TRY HARDER CNN!
Source: CNN - 🏆 4. / 95 Read more »