A cut in interest rates by the Federal Reserve next year is likely to be bad news for U.S. equity investors, according to Hugh Gimber, global market strategist at JPMorgan Asset Management. Stocks have typically rallied on multiple occasions over the past two years on any dovish signal from central bankers – hoping that the cost of borrowing will be lowered as inflation falls.
Those things can't both happen at the same time," the strategist said. Catalyst for a breakdown in stocks Gimber said the third-quarter earnings season will likely start to show cracks in the growth outlook that will lead to lower forecasts. "I think as we move through Q3 earnings season, analysts really start to sharpen their pencils on that 2024 figure, and I think that has to come down," he said.
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Source: CNBC - 🏆 12. / 72 Read more »
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