According to the research firm, investors could actually see more losses if the economy manages a"no landing" scenario, meaning the US avoids a slowdown and a recession and instead continues to remain strong.
Already, Fed officials have hiked rates 450 basis points over the last year to tame high inflation. That caused thein 2022. Though most analysts have forecasted interest rates reaching 5% this year, rates could soar to 6.5% if the US avoids a recession, strategists estimated. The market has already given up some of its gains from the start of the year as investors price in more rate hikes, with rates also staying higher for longer.
Brought to you by those shorts favoring a recession... sooner.
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