Stock market outlook: A rally is coming in the 2nd half, BMO says

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Stocks are set to rally in the 2nd half of the year and it 'makes no sense' to assume prices have peaked, strategist says

Stocks are set to rally in the second half of the year, and it's wrong to assume that market prices have already peaked, according to BMO's chief investment strategist Brian Belski.on Tuesday, Belski pointed to the thesis often made by bearish investors, who say that the momentum in stocks will die off in the second half of 2023 as the US tips into a recession. collapse of Silicon Valley BankBut bears are ignoring important forms of disinflation in the market, Belski said.

Analysts expect a cut in interest rates to be bullish for stocks. Central bankers raised rates over 1,700% in the past year to control inflation, a move that's significantly tightened financial conditions and led to a 20% decline in the S&P 500 last year. A Fed pause in rate hikes or a pivot to rate cuts will likely

 

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