Bank of America expects the second half of 2023 to be affected by the delayed US recession
Per Bloomberg
A Bank of America strategist says that the stock market will take a hit in the second half of this year and that the drop would be due to the delayed recession in the US. Executive Vice President Michael Harnett led a team that came up with the expectations of how the stock market would take a hit in the second half of the year.
The strategist says that although the economy remained resilient, because of it, interest rates could remain high for a longer period. It was also noted that the year's first half would not be affected.
In the first half of 2023, economic growth is expected to stay robust and central banks are expected to remain aggressive for an extended period. While "no landing" is expected to happen in the first half, the same cannot be said with the year's second half, per Bank of America.
A recent survey by the Bank of America's global fund manager found the thoughts of most investors regarding the equity rally of 2023. Per the survey, it was found that most investors do not expect it to last.
Michael Wilson of Morgan Stanley shared how equities are expected to hit their bottom in the spring of this year. Wilson also said that US stocks are at the point where they are ready for a selloff after the Fed hike pause resulted in what was described as "premature pricing."
In September 20222, a Bank of America study found that 71% of employees noted that their salary could not keep up with the cost of living. This number was higher compared to 58% in February.
In August, it was noted that there was a 16.3% year-over-year increase in the average monthly utility payment. It was found that 17% of households either missed their payments or were late in paying them.
Earlier this year, Elon Musk said there would be a serious recession in 2023, which is a change in statement from saying that he doesn't think there would be a recession in 2023.
See flow at unusualwhales.com/flow.
Other News:
- 71% of Employees' Salaries Can't Keep Up With Costs as Average Utilities Payment Increased by 16.3% YOY
- Elon Musk has said: I think 2023 is going to be quite a serious recession, and it's going to be comparable to 2009
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