'The market is built on a bedrock of total complacency': A former top TD Ameritrade technical analyst says stocks will fall another 20% this year as investors begin to realize a Fed pivot isn't in the cards for 2023
Bierman believes investors are too hopeful for a Fed pivot in 2023.The more inflation falls, the more hope investors have that a Federal Reserve pivot to dovish policy will come. Bureau of Labor Statistics reported that prices rose 6.5% year-over-year in DecemberBut according to Jeff Bierman, the chief market technician at TheoTrade who held the same position at TD Ameritrade between 2007-2015, investors shouldn't be betting on a shift to dovish policy in 2023.
"Inflation goes up like a volcano and comes down like a feather," Bierman said."It's going to take a while to reset inflation lower."This hawkish policy will eventually lead to a recession this year, Bierman said, a. An economic downturn will mean earnings estimates will have to come down, he said, which will be bad news for stocks.
But in addition to fundamentals, technical indicators are showing the market is due for another sell-off, according to Bierman. , also know as the VIX, which gauges expectations for volatility in the S&P 500. Bierman believes the S&P 500 will bottom out around 3,200-3,250. A bottom of 3,200 would represent 20% downside from the index's current level of 3,999. Bierman's recession call has become a somewhat consensus view on Wall Street.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
The stock market set-up heading into the crucial CPI report Thursday morningStocks are rallying on a bet that inflation (particularly wage inflation) is moderating and that job growth will slow down but not collapse.
Weiterlesen »
5 things to know before the stock market opens ThursdayHere are the most important news items that investors need to start their trading day.
Weiterlesen »
STOCK MARKET NEWS: Consumer prices on tap, air travel stabilizes, Amazon workers victoryDecember consumer prices gains may slow, but stay high. A labor board director upholds Amazon worker's union victory. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
Weiterlesen »
Stock market outlook: S&P 500 could gain 18% if inflation keeps coolingStocks could rise 18% this year as long as inflation keeps coming down and the Fed backs off from its aggressive policy, technical analyst says
Weiterlesen »
Samsung Bitcoin Future Active ETF to Hit Hong Kong Stock Market on Jan 13Samsung's new Bitcoin ETF listing targets both retail and institutional investors.
Weiterlesen »
5 things to know before the stock market opens FridayHere are the most important news items that investors need to start their trading day.
Weiterlesen »