Stocks could struggle as investors read the Fed's message to mean a recession is more likely

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Stocks could struggle as investors read the Fed's message to mean a recession is more likely
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The risk of recession could mean that downward earnings revisions could be even worse, strategists say.

Lerner said investors should also realize that higher rates in the bond market could pressure stocks as investors look for attractive yield elsewhere. "There is an alternative to equities now," he said. "You're getting paid in the fixed income market, and the fixed income market is getting more attractive." Sam Stovall, chief investment strategist at CFRA, said the more hawkish Fed does not mean the market will keep from rallying in the fourth quarter.

"It raises the question that maybe the worst is not behind us," said Stovall. He said the fact that the S & P 500 did not hold the key 3,803 level Wednesday means it could now test the June low. On an intraday basis, the S & P 500 fell to 3,636 in June. Stovall said the market, however, may take some solace in the Fed's roadmap on rates.

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GoldmanSuchs is dumping $147 BILLION in stocks !!! That's the reason CNBC is luring bagholders...

Is inflation down to 2% ? Then NO pivot! DON'T FIGHT THE FED! FED would have to force StockMarket crash to fight inflation -

Great image 🫠

Which recession are we talking about? The old definition or the “new” definition… I get so confused. 🤣

FJB

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