Why the stock market won't see a year-end rally in 2023, according to financial experts and CIO of Morgan Stanley

Why the stock market won't see a year-end rally in 2023, according to financial experts and CIO of Morgan Stanley

According to a report by www.businessinsider.de,

The stock market will not see a year-end rally in 2023, according to Morgan Stanley CIO Mike Wilson. Mega stocks have slumped after lackluster earnings, dragging down the S&P 500. U.S. companies face strong headwinds from high interest rates, weighing on future earnings.

As an economic expert, I analyze this development and its impact on the market and consumers. The bleak macroeconomic outlook and rising borrowing costs for businesses and households are likely to cloud the economic outlook. This could lead to a long-term slowdown in economic growth and have a negative impact on the market.

Disappointing earnings from some of the biggest stocks and the inability to reverse the ongoing correction could keep the index above key technical levels show that a recovery by year-end looks unlikely. This is expected to impact investor confidence and positioning, which could cause further market volatility.

The uncertainty in late cycle phases, as well as the fact that price momentum often dictates investors' views on fundamentals and therefore their confidence and positioning, is likely to lead to general uncertainty in the market.

Overall, these factors could contribute to a slowdown in the stock market in general and a year-end rally that may not play out as expected. Investors and companies need to prepare for possible more volatile times and reduced market coverage.

Disclaimer: Stocks and other investments generally involve risk. A total loss of the capital invested cannot be ruled out. The articles, data and forecasts published are not a solicitation to buy or sell securities or rights. They also do not replace professional advice.