The stock market is at a “critical” level with a “high risk” of collapsing in March, according to Morgan Stanley’s Michael Wilson. Though high inflation and rate hikes have continued to scare investors, Wilson says the depth and length of most bear markets can be determined by a trend in earnings projections. Since the S&P spiked in October and fell 3% last week, investors may want to prepare for a difficult end to the quarter. The Fed’s tightening has taken a hit on the stock market and commodities, but Bloomberg’s Macro Strategist Mike McGlone sees this as a passing phase and predicts precious metals to skyrocket as a result. “Maximum pain before the gain… I fully expect gold in U.S. dollar terms to break above $2,000 an ounce and never look back,” McGlone said. Maximum pain is right, as BofA Global Research has just predicted the Fed will hike interest rates to nearly 6%.
Forbes/Jonathan Ponciano
Stock Market At ‘Critical’ Level And Braced For ‘High Risk’ Of Collapse In March—Here’s What Investors Should Know
After a slew of data showing the economy in a much more precarious position than previously believed, the stock market could be poised for another forceful plunge in March, according to Morgan Stanley’s investment chief, who notes that the last month of the quarter has been difficult for stocks over the year, as investors gear up for a fresh round of negative earnings reports.
Though high inflation and Federal Reserve interest rate hikes have fueled much of the fears driving the ongoing stock weakness, the depth and length of most bear markets are determined by the trend in earnings projections, the Morgan Stanley team led by Michael Wilson told clients in a Monday note.
Continue reading, here.
Kitco News/Michael McCrae
Gold to break $2,000 and never look back – Bloomberg’s Mike McGlone
The Federal Reserve has to keep tightening in response to worrying inflation data, but its actions are going to weigh on commodities and the broader market, warned Bloomberg’s Macro Strategist Mike McGlone.
McGlone spoke to Kitco at Mines And Money Miami on Thursday.
“The Fed is still tightening. The world still tilts towards recession,” said McGlone. “The stock market and commodities [will] continue to revert lower.”
You can read the full article, here.
Reuters via U.S. News
Fed Might Raise Policy Rates to 6% – BofA
The U.S. Federal Reserve may hike interest rates to nearly 6%, BofA Global Research said, as strong U.S. consumer demand and a tight labor market would force the central bank to battle inflation for longer.
The number is higher than a peak of 5.4% by September that traders are currently pricing in.
You can read the full article, here.
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