Global economy on red alert as JPMorgan issues warning about stock market.
US stock markets could face several challenging conditions in 2024, a leading JPMorgan strategist has warned.
By LUCY SARRET
12:21, Tue, Dec 5, 2023
JPMorgan Chase’s Chief Global Equity Strategist has warned the impressive rally witnessed in the US stock market over the past month may lose momentum by the end of next year.
In a recent note, Dubravko Lakos-Bujas outlined several economic challenges, including slowing economic growth, depleting household savings, and ongoing geopolitical turmoil, which could contribute to a significant decline in the S&P 500 throughout 2024.
The note highlights the potential for a challenging macro backdrop for stocks in the coming year, citing softening consumer trends, particularly if the Federal Reserve doesn’t implement rapid easing.
Lakos-Bujas wrote: “Absent rapid Fed easing, we expect a more challenging macro backdrop for stocks next year with softening consumer trends at a time when investor positioning and sentiment have mostly reversed.”
The JPMorgan strategists predict that the benchmark index could fall to 4,200 by the end of 2024, marking an eight percent drop from current levels.
Lakos-Bujas has warned that the stock market is heading for a decline.
This forecast stands out as the most declining among major Wall Street firms, with even Morgan Stanley’s Chief US Equity Strategist, Michael Wilson, expecting the S&P 500 to end 2024 around 4,500.
Dwindling household savings, elevated borrowing costs, and cooling global demand are identified as key factors contributing to this less optimistic projection.
Advertisement
______________________________________________________
Lakos-Bujas emphasizes that without significant monetary or fiscal policy support, current growth assumptions may be more hopeful than realistic.
This cautionary outlook follows a volatile year for the stock market, with mid-2023 witnessing a downturn in all three major indexes due to concerns about the Federal Reserve potentially raising interest rates higher and for a longer duration than previously anticipated.
Source: Express
______________________________________________________
If you wish to contact the author of a post, you can send us an email at voyagesoflight@gmail.com and we’ll forward your request to the author (if available). If you have any questions about a post or the website, you may also forward your questions and concerns to the same email address.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © Dinar Chronicles
