US stocks will sink nearly 20 per cent in 2022 before ending the year little changed amid rising interest rates, according to Byron Wien’s annual list of surprises.
Wien, 88, a former Morgan Stanley strategist who’s put out his “surprises” list since 1986, is one of the most widely followed analysts on Wall Street.P 500 to see a correction that “approaches but does not exceed 20 per cent”, they wrote.P 500 rose 0.5 per cent to 4790.88 at 3.06pm in New York on Monday , while the 10-year rate jumped 12 basis points to 1.63 per cent.
The pair were closer with their call that US economic growth would exceed 6 per cent last year. A Bloomberg survey of economists anticipates 5.6 per cent growth. The 10-year Treasury yield ended the year at 1.51 per cent, 49 basis points below their forecast. Wien and Zidle expect some inflationary pressures to ease this year, particularly among commodities prices, but said that rising wages and rents will pin the Consumer Price Index higher by 4.5 per cent.
Strong earnings on govt bond buying. Stop the bond buying and see what goes