The stock market saw continued declines, indicating a challenging start to the week, setting the stage for another week of losses. This trend is causing weariness among investors who are becoming increasingly hesitant.
Chris Larkin, managing director of trading at E*Trade from Morgan Stanley, highlighted the absence of the anticipated Santa Claus Rally as stocks experienced consecutive weeks of decline, a rare occurrence since September. Larkin noted that despite a brief market boost from cooling inflation data, Federal Reserve Chair, Powell’s indication of potentially sustained high-interest rates had a grounding effect on investors.
Michael Wilson, an equity analyst at Morgan Stanley, warned that while rates and inflation may have reached their peak, the potential impact on profitability is a concern that should not be underestimated.
Noteworthy is the outlook held by affluent millionaire investors, who foresee substantial market downturns extending into 2023 and therefore maintain a negative stance.
George Walper, president of Spectrem Group, pointed out that this group’s current pessimism is at its highest level since the 2008 financial crisis.
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