Wall Street forecasts 2024: Investor situation after a turbulent start

Wall Street forecasts 2024: Investor situation after a turbulent start

According to a report by www.wallstreet-online.de, Wall Street has had a shaky start to 2024. Some strategists are predicting further pullbacks in U.S. stocks and asking where investors can hide.

Marko Kolanovic, JPMorgan's chief strategist, believes that despite the partial turnaround at the start of the year, stock markets remain overbought and investors are too complacent. While risk assets have now “fully embraced” the idea that central banks will ease monetary policy as inflation falls, the robust growth and continued record profitability may be contradictory for investors.

Another bear is David Rosenberg, founder of Rosenberg Research, who says his firm is now “maximally bearish” on U.S. stocks. The strategist cites some worrying recent developments.

These pessimistic statements from financial experts can lead to a decline in investor confidence, which can lead to increased selling pressure. Therefore, if investors continue to hold back and sell risky assets, this could lead to a fall in stock prices and a more volatile market. The negative sentiment could also prompt institutional investors to review their investment strategies and potentially lead to reduced demand for U.S. stocks. The impact could therefore lead to general uncertainty and instability in the stock market.