According to market expert Larry McDonald, the S&P 500 will decline by 30% by December as spending declines, profitability decline, and banking issues worsen.
Larry McDonald has predicted that the S&P 500 will drop by close to 30% to little under 3,000 points by December.
He identifies the main forces as declining government spending, declining corporate profitability, and banking pressures.
Energy and metals are promoted by the “The Bear Traps Report” founder as wise investments in a challenging economy.
As the triple-whammy of declining corporate profits, reduced government expenditure, and rifts in the banking system give equities a devastating blow, Larry McDonald has predicted that the S&P 500 will drop over 30% by December.
The “The Bear Traps Report” founder and market expert predicted this week that the benchmark US stock index would fall from its current level of over 4,200 points to just 3,000 points by the end of the year.since June 2020, which would be its lowest point.
Early in March, McDonald predicted the stock market may decline 30% within the following 60 days. Since then, the S&P 500 has increased by 5% and has increased by almost 10% this year. McDonald countered that his prognosis wasn’t entirely off the mark.
McDonald was referring to the fact that investors recently sold a number of blue-chip stocks, but instead of investing the proceeds as he had anticipated, they invested them in other firms they believed to be more recession-resistant.
They have recommended companies including Hershey’s, McDonald’s, Dick’s Sporting Goods, and artificial intelligence bets like Microsoft and Nvidia.
In fact, according to SlickCharts statistics, roughly a sixth of the S&P 500’s members have lost at least 10% of their value this year. That means a relatively small number of stocks have been responsible for the index’s nearly double-digit increase since January.
They have recommended companies including Hershey’s, McDonald’s, Dick’s Sporting Goods, and artificial intelligence bets like Microsoft and Nvidia.
In fact, according to SlickCharts statistics, roughly a sixth of the S&P 500’s members have lost at least 10% of their value this year. That means a relatively small number of stocks have been responsible for the index’s nearly double-digit increase since January.
