Bank of America strategists have given a grave warning about the near-term economic future for Americans.
According to Bloomberg, Bank of America strategist Michael Hartnett stated, “Base case remains equity lows, yield highs yet to be reached.”
According to the New York Post, the unprecedented economic crash is far from done, as the Dow Jones Industrial Average plunged more than 1,000 points and the Nasdaq fell more than 5% during Thursday’s session.
According to the Post, the broad-based S&P 500 has lost over 14% since the start of 2022, the worst start since 1939.Strategists
Americans Aren’t Buying Biden’s Tale Of Economic Recovery https://t.co/jOZJmn48A3
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According to Bloomberg, Bank of America analysts termed the current market as “paralysis rather than panic” as investors try to figure out how the Fed’s long-term rate hike plan will affect their holdings.
Hartnett wrote, “‘Recession shock’ was priced-in too quickly; this is a problem as stronger-than-expected economic data in the first half is causing the market to price-in longer/bigger inflation/rates shock.”
According to the Washington Post, inflation reached 8.5 percent in March, the highest level since 1981.
According to BlackRock President Rob Kapito, present and future inflation rates would undoubtedly lead to labor and raw material shortages, removing daily commodities from American shelves.
Only 2% of Americans thought the present economic situation was “good” in a recent Gallup poll. More than three-quarters of those polled believed the economy was deteriorating.