<p>A snippet from Goldman Sachs. I sort of thought I’d be kind to them in that headline above as the comment seems a bit obvious:</p><ul><li> While the market has priced more risks of a hawkish/recessionary outcome, our estimates imply that, if the Fed pushes the economy into recession, there could still be significant downside to both short-dated bonds and <a href=”https://www.cfdmagnates.com/fm/education/terms/edit-term/9c7de710-0fba-425c-93e5-422427b92644″ target=”_blank” id=”9c7de710-0fba-425c-93e5-422427b92644_1″ class=”terms__main-term”>equities</a> here.</li></ul><p>Well, yeah.</p><p>Soc Gen say in the event of a mild recession they see the S&P500 potentially as low as 3200, or 2500 if the Fed carries on hiking into a recession in order to curb <a href=”https://www.forexlive.com/terms/i/inflation/” target=”_blank” id=”ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_1″ class=”terms__secondary-term”>inflation</a>.</p><p>I know there are some picking a stock market bottom. You know what they say about bottom pickers though. They end up with smelly fingers. </p>
This article was written by Eamonn Sheridan at forexlive.com.