Deutsche Bank: US Stocks Face Binary Outlook

Prediction   #sp500  

pc[“The outlook looks relatively binary: in the event we slide into a recession, the selloff has much further to go,” Chadha said, reiterating that the S&P 500 #SP500 Index could slide to as low as 3,000 points in his worst-case scenario -- nearly 25% lower than Wednesday’s close. If recession is avoided, “we expect the market to rally back sharply to its prior peaks,” he said. His base-case scenario still sees stocks rising by year-end.

Chadha said, however, that with market positioning low and inflation data less likely to surprise to the upside, the equity benchmark may have room to move higher in October.

He maintained his year-end target of 4,750 points for the S&P 500 -- up 19% from current levels. “Leading indicators are consistent with a descent into recession but not signaling we are in one already,”]ce #checkbyYE2022 Predicted By Binky Chadha, Deutsche Bank.