Some Wall Street observers are worried the S&P 500 is headed for another grim showing in 2023. According to Business Insider, the index suffered its worst loss since 2008 last year amid rising inflation and aggressive Fed policy. In other news, a recession indicator, which hasn’t been wrong in 56 years, is once again flashing warning signs.

Business Insider/Jennifer Sor
From tumbling earnings to sky-high valuations, here are 4 reasons experts see losses in the S&P 500 for a 2nd straight year

The S&P 500 could be headed for another dismal year, Wall Street analysts and bankers say, warning that the benchmark stock index still isn’t a safe bet for investors amid a myriad of macro and market headwinds.

The S&P 500 fell 20% in 2022 amid rising inflation and aggressive interest rate increases by the Federal Reserve.

Those are the worst losses investors have seen since the 2008 recession, sparking fears that the market is entering a new era of heightened volatility and anemic returns. BlackRock recently warned investors that old playbooks and approaches can’t be relied on, and to prepare portfolios for a paradigm shift.

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The Motley Fool/Sean Williams
This Recession Indicator Hasn’t Been Wrong in 56 Years: Here’s What It Says Happens Next

For most investors, last year served as a reminder that the stock market doesn’t move up in a straight line — even if 2021 made us believe it did. The start of a new year brings with it new opportunities for the iconic Dow Jones Industrial Average (^DJI), broad-based S&P 500 (^GSPC 1.89%), and tech-dependent Nasdaq Composite (^IXIC), to break out of their respective bear markets.

However, the optimism we’ve witnessed in the Dow, S&P 500, and Nasdaq Composite through the first two weeks of the trading year may need to be put on hold based on newly released data from the Federal Reserve Bank of New York.

If there’s an elephant in the room for Wall Street, it’s the dreaded “r-word”: recession.

You can read the full article here, here.

Fox Business/Eric Revell
Major Social Security trust funds could be tapped out by 2033: CBO

The non-partisan Congressional Budget Office updated its long-term projections on the solvency of Social Security last month, finding that the program’s major trust funds could be tapped out in 2033.

The CBO’s analysis found that if the projected gap between the outlays from the trust funds and the revenue they receive happens as forecast, the balance of the trust funds would hit zero in 2033 and the Social Security Administration wouldn’t be able to pay out full retirement benefits as they come due.

Specifically, the CBO found that Old-Age and Survivors Insurance Trust Fund would be exhausted in 2033 and the Disability Insurance Trust Fund would be exhausted in 2048. If the two trust funds were combined, the exhaustion date would come in 2033

You can read the full article here, here.

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