6 reasons stock market will slide 18% in next 3 months: Goldman Sachs - Business Insider

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Goldman Sachs warns stocks will tumble 18% in the next 3 months — and lays out 6 risks they think investors are ignoring

The bank sees the benchmark index closing the year at 3,000 — roughly 2% higher than its Friday close of 2,930 — as the coronavirus threat fades and the economy rebounds. Yet Goldman's forecast also reflects an 18% downside to its three-month target, with looming threats dragging the benchmark index to 2,400 by the end of the summer.

The stock market's recent surge from late-March lows is best attributed to a "fear of missing out" attitude among investors, and skepticism surrounding the rally's strength remains, Goldman added. Infection rates could grow even more as states reopen their economies. Without a vaccine, a prolonged nationwide outbreak will likely quash indexes' weeks-long rally, the analysts wrote.Goldman cited a recent call from IDEX Corp. while forecasting a drawn-out rebound. The manufacturing giant expects the US upswing will come with "fits and starts," adding that expectations of a full recovery by the fall are "crazy talk.

With the labor market taking a harder-than-expected hit, the analysts now see $115 billion in additional reserve bolstering over the next 12 months.

 

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Really, how about in the next three weeks? If you can't keep the Kovid out of the WhiteHouse, how you gonna keep out of the MallofAmerica ? Phase1 Phase2

We’ll see.

djrothkopf The market will get hammered when the Coronavirus explodes in June and July due to reopening and lack of social distancing.

RevShark

So what's happening after those 3 months?

who else is high? 🙎🏽

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