U.S. stocks won’t bottom out until the middle of next year as the Federal Reserve pivots back to lowering interest rates, according to Arend Kapteyn, an economist at UBS Group AG UBS.
The... U.S. stocks won’t bottom out until the middle of next year as the Federal Reserve pivots back to lowering interest rates, according to Arend Kapteyn, an economist at UBS Group AG UBS . The decline is expected to be driven by weak corporate earnings growth and more Fed interest rate hikes, which will continue at least through the first quarter of next, the UBS economist said.Ultimately Fed interest rate cuts will help to bail out stocks. UBS expects the Fed will cut rates by 175 basis point by the end of 2023 after the Fed funds rate peaks in the first quarter. They expect the yield on the 10-year note TMUBMUSD10Y will decline to 2.
Would not pay attention to anything from UBS's upper floors: a board member was ejected, UBS stock fell, a leading risk manager resigned. The great tree is losing fruit and looks bleak. Plus they've a US led investigation. Naturally their economist would piss on the US market.
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