As the New York Stock Exchange recorded the biggest drop in more than two years as concerns about inflation resurfaced, the Nasdaq Index is expected to plunge further.
On the 18th (local time), Scott Minard, global chief investment officer (CIO) of Guggenheim Partners Global, said in an interview with Market Watch on the 18th (local time), “As the Federal Reserve (Fed) has foretold an aggressive rate hike, further declines are expected in the future. “By the fall of this year, the Nasdaq will drop 75% from its highs and the S&P 500 will fall 45%,” he warned.
The Nasdaq Index is now down 28% from its all-time high on November 19, last year. The S&P 500 is down 18% from its all-time high on January 3 this year.
Minard’s outlook suggests that the US stock market could more than double in the future. Minard expects the US stock market to not bottom out until the fall of this year.
“The stock market right now looks pretty much like the bursting of the Internet bubble (in 2000),” he said. .
“What seems clear to me is that there is no consideration for the market,” he said.
Minard emphasized that the Fed will raise interest rates right before the stock market crashes.
“Unless the entire financial market collapses, the Fed will continue to raise rates aggressively,” he said.
Meanwhile, the Dow Jones Industrial Average of the New York Stock Exchange last night closed at 31,490.07, down 1164.52 points (3.57%) from the previous day. The Standard & Poor’s (S&P) 500 index plunged 165.17 points (4.04%) to 3923.68, and the Nasdaq index, centered on technology stocks, closed at 11,418.15, down 566.37 points (4.73%), respectively.
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