There’s little question that 2023 has gotten off to an excellent begin for inventory traders. Since January 5, we’ve seen a pointy rally within the markets – the S&P 500 is up 5% in that point, and the NASDAQ index has gained a stronger 8%. While this doesn’t finish the longer-term bearish market since early final 12 months, it does carry some hope that this 12 months could also be higher.
Or maybe not. Economist Mohamed El-Erian has taken a downbeat have a look at the near-term prospects, noting that headwinds are in play which can carry extra strain to the markets.
El-Erian doesn’t deny the latest optimistic turns which have bolstered sentiment, significantly the cooling down within the price of inflation and the slowing down within the Federal Reserve’s aggressive rate of interest hikes. But he additionally factors out 4 robust headwinds: the potential for a brand new COVID outbreak in China; depleted family financial savings within the US; the chance that US inflation will stay ‘sticky’ at 4% or greater; and a Federal Reserve which may be…
2023-01-18 09:50:21 Mohamed El-Erian Says the Stock Market Rally Could Be Short-Lived; Here Are 2 ‘Strong Buy’ Dividend Stocks for Stable Cash Return
Original from finance.yahoo.com