(Bloomberg) — Up and down Wall Street, forecasters were caught off guard by the unexpected twists and turns of the first half of 2023 in financial markets. This has shaken their confidence in predicting the winning strategy for the rest of the year. Prior to the year, a few predictions dominated strategists’ annual outlooks. They anticipated an imminent global recession, with bonds outperforming stocks as equities tested bear-market lows. Central banks were expected to be able to halt the aggressive rate hikes that caused market turmoil in 2022. As growth stumbled, risky assets were expected to suffer further. However, this bearish outlook was shattered as stocks rallied despite the Federal Reserve’s continued interest rate hikes in the face of persistently high inflation. Additionally, the anticipated Year of the Bond failed to materialize, with US Treasuries nearly erasing their small gains for the year as yields reach new highs and the economy remains surprisingly resilient in the face of the Fed’s…
2023-07-08 10:00:05
Post from finance.yahoo.com
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