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.

BidenWorstPresidentInHistory

That's a great opportunity for new investors

☆☆☆

As Planned

Canada Canada Latest News, Canada Canada Headlines

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

Why the stock market is suffering its worst rate-hike cycle performance everThe stock market's slide since the Fed began hiking interest rates is the steepest of any rate-hike cycle on record, says Deutsche Bank.
Source: MarketWatch - 🏆 3. / 97 Read more »

STOCK MARKET UPDATES: Investors cautious ahead of jobs data, rail strike looms, Musk vs. AppleInvestors eye key reports on job openings, hiring and Fed Chair Powell speech, FTX latest, Elon Musk taunts Apple, oil rebounds. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
Source: FoxBusiness - 🏆 458. / 53 Read more »

Stock market could plunge another 24% next year, Bank of America warnsBank of America analysts said this week the S&P 500 could plunge as much as 24% next year as a result of the Federal Reserve's quantitative tightening. Or it could rise 24% next year. My prediction is as sound as yours. FJB What is going on
Source: FoxBusiness - 🏆 458. / 53 Read more »

Asian Stock Market: Mixed signals from China tests traders ahead of key Fed talksAsian markets struggle for clear directions during early Wednesday as traders await crucial catalysts scheduled for publishing. Also likely to have ch
Source: FXStreetNews - 🏆 14. / 72 Read more »

Strong economy now will lead to stock market crash, recession, higher inflation in 2023Insider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know. DougJBalloon
Source: BusinessInsider - 🏆 729. / 51 Read more »

Tesla's Stock Upgraded As Market ShiftsTesla’s stock is among many that have had a rough year in the face of the current bear market. But some investors
Source: cleantechnica - 🏆 565. / 51 Read more »