Connect with us


Stock market could plunge another 24% next year, Bank of America warns


The stock Exchange is not out of the woods yet and could face further volatility next year due to the Federal Reserve’s quantitative tightening, according to Bank of America strategists.

In an analyst note this week, analysts led by Savita Subramanian warned that the Fed’s balance sheet reduction could fuel liquidity risks in different areas of the market.

Bank of America projected a base-case scenario of flat returns in 2023, with the S&P 500 ending the year at 4,000, up just 0.9% from Monday’s close.

But he warned of major market volatility throughout the year and said that in a so-called bearish scenario, the S&P benchmark could fall another 24% from current levels at 3,000.


Federal Reserve Chairman Jerome Powell

U.S. Federal Reserve Chairman Jerome Powell arrives to speak at a news conference following a meeting of the Federal Open Market Committee (FOMC) in Washington, DC, September 21, 2022. (Photographer: Sarah Silbiger/Bloomberg via Getty Images/Getty Images)

In the event of a bull market, Subramanian estimated that the S&P could end the year at 4,600.

The uncertainty stems from “unprecedented leverage risk” by governments and central banks, which could lead to liquidity risks in “strange places” as the Federal Reserve shrinks its balance sheet from about $8.6 trillion to a rate of 95 billion dollars per month.


The The Fed has started to relax its balance sheet in June, deploying one of its lesser-known tools to fight the strongest inflation in decades. The balance sheet, which consists mostly of bonds and other assets it has purchased, nearly doubled in size during the pandemic as the Fed purchased mortgage-backed securities and other Treasuries in order to continue to borrow cheaply.

Policymakers say the portfolio sell-off will work in tandem with a series of aggressive interest rate hikes to depress prices by slowing growth and tightening credit.

The Fed has also voted to raise interest rates in six consecutive meetings, including approving four 75 basis point rate hikes, as it tightens policy at the fastest pace since the 1980s. inflation eased slightly last month – the consumer price index rose 7.7% a year, the slowest pace since January – authorities showed no signs of a slowdown in rate hikes .


“Let me say this,” Fed Chairman Jerome Powell told reporters Nov. 2. .”

Economists and some legislators are increasingly concerned about the impact of rising interest rates on the the american economy, and there is a broad consensus on Wall Street that the Fed will trigger a recession with its war on inflation.




The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos


to request, modification Contact us at Here or [email protected]