Markets Insider: Recession is Coming And it Could Send Stocks Plummeting 26%, Strategist Says
Article by Jennifer Sor in Markets Insider
A recession is still on the way even as optimism pervades across Wall Street, and stocks are at risk of a steep plunge when a downturn hits, according to BCA strategist Roukaya Ibrahim.
In an interview with Fox Business Network on Thursday, Ibrahim said the economy would likely tip into a downturn before early 2025. Once a recession strikes, the S&P 500 could fall as low as 3,500, she predicted, which would take the benchmark index around 26% lower from its current levels.
That outlook is based on the Federal Reserve's "aggressive" monetary tightening since March 2022, Ibrahim said. Interest rates are now the highest they've been since 2001, a level economists have long-warned could overtighten financial conditions and push the US into a recession.
Economists have also said that the full .....