Here’s The Worst Case Scenario For Stocks, According To Goldman, Deutsche Bank And Bank Of America

Here’s The Worst Case Scenario For Stocks, According To Goldman, Deutsche Bank And Bank Of America

Share to Linkedin Amid heightened recession fears, major Wall Street firms now warn that the ongoing market selloff, which is on track for seven consecutive weeks of losses, could get much worse—with stocks set to plunge by another 20% or so if the economy heads towards a looming recession. One top strategist sees stocks falling by another 24% if the economy falls into a recession. Recession fears have spiked this week, after major retailers warned about inflationary pressures eating into quarterly profits and the Federal Reserve pledged that it "won't hesitate" to keep raising interest rates until surging prices come back down. The S&P 500 could plunge to 3, 000 if the economy falls into a recession in the near future, which would amount to a roughly 24% drop from the index's current level of around 3, 900, according to a recent note from Deutsche Bank's chief U. S. equity and global strategist, Binky Chadha. While he has a 4, 750 price target for the S&P 500 (over 20% higher than current levels) and predicts a "relief rally" by year-end, there are risks that a "protracted selloff" could slide into a "self-fulfilling recession," Chadha said. Market losses could intensify if