“We do not think the bear market is over”: Goldman, Morgan Stanley expect stocks to hit new lows

“We do not think the bear market is over”: Goldman, Morgan Stanley expect stocks to hit new lows

Data: FactSet; Chart: Axios VisualsData: FactSet; Chart: Axios Visuals

Data: FactSet; Chart: Axios Visuals

As the summer rally sputters, top Wall Street analysts expect new lows for stocks.

Why it matters: The S&P 500 is already on track for its worst year since 2008, but these analysts suggest things may get much worse.

  • The S&P 500 is already down 16.5% in 2022.
  • The Nasdaq is down nearly 25%.

Context: Technically, the S&P 500 has been in a bear market since its Jan. 3 peak of 4,797, after which it fell nearly 24% before seeming to hit bottom in June and rebounding.

What they’re saying: “We do not think the bear market is over,” Morgan Stanley analysts wrote in a note this week.

  • The analysts think the S&P — currently hovering around 3,980 — likely falls at least another 15%, to 3,400, during the fourth quarter.
  • The index could even collapse by 25%, falling to 3,000, if the economy slips into a recession, they added.

Meanwhile, Goldman Sachs stock market analysts called the June to August rally, in which the S&P rose more than 17%, a “bear market rally,” in a note published yesterday.

  • “We expect further weakness and bumpy markets before a decisive trough is established,” they wrote.

The bottom line: You might want to start averting your eyes from the old 401(k) statement again.

View Original Article

Free weekly Newsletter

A weekly breakdown of forecasts and trends

Enter your contact info to get The Financial Gambits VIP Newsletter for FREE.

We hate spam as much as you, if you dont like it just unsubscribe and we will never bother you again 


Learn how the spacial web will change the course of our lives and how to identify companies that show the most promise.