Prepare For The S&P 500 To Plunge 23% By Mid-2024 And The US Economy To Sink Into Recession, JPMorgan’s Top Charts Guru Says

published on: December 6, 2023 last updated on: May 16, 2024
The S&P 500 To Plunge 23% By Mid-2024 - And The US Economy To Sink Into Recession
  • The S&P 500 will probably tumble 23% to 3,500 points by the middle of 2024, as per JPMorgan’s chart guru.
  • Jason Hunter, the head of technical strategy of the bank, looks at the US recession as pretty likely.
  • Hunter looks at cash and Treasury bonds as safer bets than stocks today.

Be ready for the S&P 500 to crash by at least 23% within the upcoming summer and for a recession to get hold as per the warnings of the top chart guru of JPMorgan.

The stock market has been mistakenly pricing in a “soft landing” for the economy of the United States, where the Federal Reserve has succeeded in crushing inflation without having to cause a recession. But the investors will soon be realizing that the viewpoint is darker than what they had thought, initiating a sell-off in the stocks, the head of the technical strategy of the bank had said.

“You tend to find your way into a bear market that’s eventually associated with a recession way more often than not,”

Hunter had said, referring to the currently inverted yield curve, which is a reliable indicator of the economic plan.

“The odds are stacked in favor of a hard landing, actually.”

The Federal Reserve has hiked the rates of interest from approximately zero in the previous spring to the north of 5% today in a bid that may curb the historic inflation.

Many of the stock investors have been betting the Central Bank in the United States is to cut the rates in the upcoming year, which will boost the prices of assets and will stimulate growth. However, they could be a little too positive as the Fed will probably not be loosening its monetary policies until the economy is cooling down.

“We’re going to have to go to stall speed,”

said Hunter.

“That’s what enables the Fed to start easing in the second half of the year.”

“The market’s going to have a significant gut check of whether inertia’s going to carry to a recession or not,”

he further added.

“Stocks should pull back.”

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upasana sarbajna

Upasana is a budding journalist who has a keen interest in writing. She considers writing as therapeutic and is most confident when she writes. She is passionate about music, movies and fashion. She writes in a way that connects with the audience in a personal level. She is optimistic, fun loving and opinionated.

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