Goldman Sachs CEO David Solomon believes that the U.S. will likely experience a recession in 2023. “Generally, when you find yourself in an economic scenario like this where inflation is embedded, it’s very hard to get out of it without a real economic slowdown,” he said. Other experts are sounding warning bells as well. In a recent analysis, portfolio manager Dan Niles said he believes that Q1 will be pretty rough for the markets.

Bloomberg via Yahoo Finance/Ye Xie, Michael Mackenzie, and Emily Graffeo
Wall Street’s Top Stars Got Blindsided by 2022 Market Collapse

Marko Kolanovic and John Stoltzfus, two of the loudest stock bulls on all of Wall Street, were convinced of one thing at the outset of 2022: The Federal Reserve would go slow, very slow, with its plan to lift interest rates. Nevermind that inflation had already soared to its highest level in four decades. The rate increases, they said, would come in increments so small that financial markets would barely feel them.

And so Kolanovic, JPMorgan Chase’s co-head of global research, predicted a broad rally. He and his team pinned the S&P 500 Index at 5,050 by the end of 2022. Stoltzfus, the chief investment strategist at Oppenheimer, was even bolder: 5,330.

They were off by more than 1,000 points.

You can read the full story, here.

Fortune via Yahoo Finance/Will Daniel
Goldman Sachs economists keep doubling down on their call that we’ll avoid a recession. Their boss disagrees

Throughout 2022, investment banks, economists, and billionaire investors have warned that a recession is on the way as the Federal Reserve battles inflation with interest rate hikes. And recently, the doomsday predictions for the economy have heated up. Greg Jensen, the co-chief investment officer of the world’s largest hedge fund, Bridgewater Associates, said earlier this month that a recession of “double the normal length” could begin next year because of stubborn inflation and hawkish central banks.

And Nouriel Roubini, professor emeritus at New York University’s Stern School of Business and the CEO of Roubini Macro Associates, even told Fortune that a “variant of another Great Depression” could be on the way as the global economy grapples with a string of interconnected “MegaThreats.” But Goldman Sachs’ economists are standing by their optimistic outlook for the U.S. economy, even if their CEO isn’t.

You can read the full story, here.

Fox Business
Quarter one expected to be ‘pretty rough’ for the market: Dan Niles

Satori Fund founder and portfolio manager Dan Niles provides a professional analysis of the U.S. economy following a volatile year for the markets on “Barron’s Roundtable.”

Watch the full clip, here.

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