The lingering impact of the 2008-2009 Great Recession compounded by the Covid-19 downturn continues to haunt the US economy, stirring concerns about financial stability.
BCA Research, a Canadian investment firm, warns of impending volatility in the US stock market.
BCA Research’s chief global strategist, Peter Berezin, predicts a potential recession by early 2025, foreseeing the S&P 500 plunging to 3,750-a 30% drop from current levels.
He attributes this to expected labor market slowdowns impacting consumer spending, crucial for economic growth, and notes the intricate relationship between inflation and unemployment.
Berezin also highlights global economic challenges, including slowdowns in China and Europe, which could exacerbate pressures on international stock markets.
Despite the Dow Jones Industrial Average hitting record highs in mid-May, recent market turbulence has cast a shadow over future prospects. This pessimistic outlook comes after a tumultuous year for financial markets.
Nvidia, renowned for its AI chips, saw its market capitalization exceed $3 trillion in the second quarter, reflecting the robust confidence Wall Street places in artificial intelligence.
In the realm of financial markets, cryptocurrencies and tech stocks have emerged as dominant contenders for investor attention.
Cathie Wood, the founder of Ark Invest, remains a significant figure in the world of growth investing despite her flagship Ark Innovation ETF (NYSEMKT: ARKK) declining nearly 6% over the past five years, even as the S&P 500 surged 85%.
Newly elected European governments face tough financial situations, tasked with implementing change despite limited resources.