According to Goldman Sachs’ most recent predictions, which have previously excluded the upcoming recession that some predict, it is still unlikely that the American economy will stagnate within a year.
According to comments made to Jimmy Diam, a.k.a. Wall Street, the president of JP Morgan, the largest American bank, the recession may begin in the middle of next year.
This contrast between the two banks is a kind of confusion, especially for investors, and there were also several surveys on the subject of recession. Nevertheless, expectations are always more reasonable when there are fresh economic data and data points.
As for the stock market, which concerns a large number of traders, especially individuals, the President of GB Morgan’s view was pessimistic about the market, as American stocks are expected to decline 20 percent of these levels, but the bank itself was stated that the American market is approaching the bottom, and here we see not Just a difference between banks’ expectations, but also within some banks themselves.
Additionally, there are senior analyst and investor expectations.
Some believe that the market has price all the procedures and raising interest rates to the Federal Reserve so far, and also with regard to the expectations of the last meeting of this year in December, and therefore the markets are aware of all of this.
The Nasdaq compound index, which fell by more than 33 percent, was the market’s biggest loser.
But in exchange, regardless of the variation in expectations, the abrupt fluctuations will undoubtedly continue, particularly with each meeting of the Federal Reserve and a decision on interest rates as well as information on inflation, the American labour market, and unemployment rates.
Market bottom, interest stagnation, and special banks’ divergence
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