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Peter Davis

An writer at FOMOdrive

  • Aug 28, 2023
  • 2 min read

JPMorgan gave a forecast for the stock market until the end of 2023

It is anticipated by JPMorgan bank that the stock market will experience a decline until the end of 2023.

The potential for growth of the S&P 500 index has been exhausted, according to experts.

It was announced by Wall Street that the "golden age of investing" had come to an end.

According to JPMorgan and RBC, the stock market rally of this year is coming to an end, as there are numerous factors that will continue to put pressure on the market until the end of 2023.

The Federal Reserve is expected to maintain a tight monetary policy, keeping interest rates high until the end of the year and not likely to reduce them in the near future.

The average P/E ratio for S&P 500 companies is currently 20x, which is the highest it can be. This is one of the negative factors that can be seen in the stock market.

Marko Kolanovic, a strategist from JPMorgan, anticipates that stocks could drop by up to 15% even if the economy experiences a soft landing.

Ralph Schlossstein, Chairman Emeritus of Evercore ISI, declared that the US Fed's aggressive monetary tightening, initiated in the previous year, had brought an end to the "golden age of investing".

Schlossstein believes that stocks will remain the primary source of income in the coming decades, but he anticipates that it will be much harder to make a profit than it has been in the past. He does not anticipate the Federal Reserve to reduce interest rates in the first half of 2024.

According to a poll conducted by CNBC last month, the majority of experts anticipate that the US stock market will not be able to sustain its upward trajectory over the next six months and will close out 2023 at a lower level than it is currently.

Analysts polled by Reuters predict that the S&P 500 may only increase by 2% before the end of the year, with an average expectation of the index ending 2023 at 4496 points. The majority of strategists highlighted inflation and high interest rates as the primary threats to the market.

Credit Suisse has increased its year-end S&P 500 prediction to 4,050 from 4,050, due to a decreased chance of a short-term recession in the US and more optimistic earnings forecasts for major tech companies.

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