Strategist says stock market may become a ‘meat-grinder of forlorn hope’ for dip-buyers

Strategist says stock market may become a ‘meat-grinder of forlorn hope’ for dip-buyers

LONDON – Investors looking for value in the stock market during the ongoing downturn may be "deluding themselves," according to Sean Corrigan, director at Cantillon Consulting. Fears that central banks will have to hike interest rates aggressively to curb inflation — at the risk of quashing growth as the global economy suffers concurrent hits from the war in Ukraine and other supply shocks — have led to broad selling across global markets in recent months. The closed Thursday's session down 18% from its all-time high, approaching bear market territory, while the pan-European is down almost 12% year-to-date and the MSCI Asia ex-Japan has shed 18.62% since the turn of the year. Tech and growth stocks, which are most vulnerable to sharp rises in interest rates, have suffered particularly steep declines, with the tech-heavy down more than 29% from its record high last year. The negative start to the year followed a rally that had propelled global stocks from the depths of the initial to record highs, with growth companies and tech titans leading the charge. Some investors have chosen to see recent weakness as a buying opportunity, but Corrigan suggested that faith in the bull run could be misplaced given