The economists of Deutsche Bank They expect the S&P 500 index to close the year near current levels.
The typical retreat in progress may be prolonged
Amid widespread expectations that the current cycle was ending, positioning tightening was a key driver of the most recent rally. Now, after the contraction, there is a tug of war between factors that impart resilience and recessive forces.
In the short term, with a number of possible negative catalysts, the typical ongoing pullback may be prolonged.
Going forward, the question is whether growth and inflation surprises can continue. We see the bar low for growth surprises, but not for positive inflation surprises.
Our view remains for a rapid sell-off and rebound at the end of the year, leaving the S&P 500 close to current levels, with the goal of 4,500 by the end of the year.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
