Bank of America: US stocks may have another round of sharp decline, and the labor market will be hit hard next year
$Dow Jones Industrial Average (.DJI.US)$ Yingwei Financial Investing.com reported on Monday (5th) that Bank of America's chief investment strategist released a research report last Friday (2nd) reaffirming his bearish stance and believes that US stocks may fall sharply from current levels.
They pointed out that although the “inflation shock” has passed and the “interest rate shock” is nearing its end, “the impact of interest rates and the economic recession on Wall Street has only just begun.”
Bank of America advises customers to say that this round of rebound is a surge in shipments because the market is running too far ahead of schedule. “The unemployment situation in 2023 may be as shocking as inflation in 2022,” the report reads.
“Bears (like us) worry that the unemployment situation in 2023 will impact the mood of major consumers like inflation in 2022, especially those with a savings rate of only 2%.”
The strategist also pointed out that for the week ending last Wednesday (November 30), capital outflows from passive stock investments were the largest since June, while capital inflows into utility stocks were the largest since January 2022. $Nasdaq (NDAQ.US)$ $S&P 500 Index (.SPX.US)$
They pointed out that although the “inflation shock” has passed and the “interest rate shock” is nearing its end, “the impact of interest rates and the economic recession on Wall Street has only just begun.”
Bank of America advises customers to say that this round of rebound is a surge in shipments because the market is running too far ahead of schedule. “The unemployment situation in 2023 may be as shocking as inflation in 2022,” the report reads.
“Bears (like us) worry that the unemployment situation in 2023 will impact the mood of major consumers like inflation in 2022, especially those with a savings rate of only 2%.”
The strategist also pointed out that for the week ending last Wednesday (November 30), capital outflows from passive stock investments were the largest since June, while capital inflows into utility stocks were the largest since January 2022. $Nasdaq (NDAQ.US)$ $S&P 500 Index (.SPX.US)$
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