Stock market outlook: New lows in 2023 on the back of volatility event

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A 'volatility event' will plunge the stock market to new lows in the next 6 months, Fairlead's Katie Stockton says

Stockton told CNBC on Tuesday that she expects a"volatility event" to plunge the stock market to new lows in the first half of 2023, as theIndex, known for measuring fear among stock market investors, punches through resistance in the mid-30s and soars to as high as 50.

Stockton sees an 80% chance that the stock market falls to new lows in 2023, and said"new highs are not likely this year" as the market consolidates and finds its footing from"I do expect this year to be an inflection year, and that makes it really hard to predict where we might see the S&P 500 at year-end," Stockton said."But we do look for some kind of major low to be established on the back of a volatility event... maybe in the next four to six months.

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