The S&P 500 will crash 30% by December as spending slumps, profits shrink, and banking problems mount, markets guru Larry McDonald warns
to crash nearly 30% by December, as a triple-whammy of shrinking corporate profits, less government spending, and fractures in the financial system deal a staggering blow to stocks, Larry McDonald has warned.
"Internally we have crashed," he told Insider."What hasn't crashed - where I'm wrong - is the capital moved out of these crash spots and into hiding spots." . That means the index's almost double-digit gain since January has been driven by a relatively small number of stocks.McDonald is a former trader and the author of"A Colossal Failure of Common Sense: The Incredible Inside Story of the Collapse of Lehman Brothers." He drew several parallels between the current market setup, and the backdrop before his former employer collapsed in 2008 and touched off the Global Financial Crisis.
For example, McDonald singled out the nearly 30% drop in MetLife stock this year, and noted large insurers don't usually lag the market by a huge amount"unless something very big is happening." He suggested the decline reflects concerns about the company's vast commercial real-estate portfolio, which has likely come under pressure from higher interest rates and tighter credit.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Goldman Sachs says A.I. could push S&P 500 profits up by 30% in the next decadeProductivity gains driven by artificial intelligence is a real source of optimism for future earnings growth among S&P 500 companies, Goldman Sachs says.
Leer más »
AI could boost S&P 500 profits by 30% over next decade: Goldman SachsAI could boost S&P 500 profits by 30% or more over the next decade, Goldman Sachs' strategist says
Leer más »
S&P 500 bulls are front side of bullish trendline towards resistanceUS stock indexes rose on Wednesday and the S&P 500 was up 43 points, or 1.07%%, at 4,153 at the time of writing. The index made a high of 4,164.67 on
Leer más »
E.L.F. Skin Is Teaming Up With Indy 500 Driver Katherine LeggeThe racing star will represent E.L.F. Skin on and off the racetrack.
Leer más »
Lexus Adds Bespoke Build Option To 2024 LC 500 Convertible | CarscoopsThe Lexus LC 500 Convertible starts at $106,350 for 2024, comes with a much better screen, and a plethora of new options car auto cars
Leer más »
Stephanie Beatriz named grand marshal of 107th Indy 500Stephanie Beatriz, acclaimed actress and voice of Mirabel in the smash hit movie 'Encanto', will be the grand marshal of the 107th Indy 500!
Leer más »