Stock market to see more pain before reaching low, BofA warns

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LONG ROAD AHEAD: Stock market to see more pain before reaching low, BofA warns

Bluerock Capital Markets CEO Jeff Schwaber reacts to stocks surging after the September CPI rose to a nearly 40-year high, on 'The Claman Countdown.'

The U.S. stock market will likely experience more pain and see losses accelerate in the coming months as scorching-hot inflation and an aggressive Federal Reserve continue to weigh on the broader economy. That's according to Bank of America strategist Michael Hartnett, who warned in an analyst note this week that lows in the stock market likely won't be reached until 2023, once the Fed backs away from its aggressive tightening campaign.

The note came after stocks rallied on the heels of the hotter-than-expected September inflation report, which showed that consumer prices had jumped 0.4% from the previous month. When excluding gasoline and food, prices soared 0.6%, or 6.6% from the previous year – the fastest pace since 1982. Hartnett described the gains on Thursday as a "decent counter-rally" that he said represented something like a "bear hug," but he suggested that more market pain will be necessary as the Fed tries to crush inflation with a series of rapid interest rate hikes.

 

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How about the investors! Folks you ain’t seen nothing yet! This is just the opening salvo! This is going to get ugly!

⚡️Great to buy more cheap... thx sellers. Im the collector, I take the future on heavy discount.. no prob 😉🎉🍾🚨👌

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