Strategists for Bank of America have issued a dire warning of the near economic future for Americans.
“Base case remains equity lows, yield highs yet to be reached,” Bank of America strategist Michael Hartnett wrote, according to Bloomberg. In layman’s terms, the historical economic rout is not over as the Dow Jones Industrial Average plummeted more than 1,000 points and Nasdaq fell more than 5% during Thursday’s session, the New York Post noted.
The broad-based S&P 500 has lost almost 14% since the start of 2022, on track for the worst start since 1939, the Post noted. (RELATED: How Did Stacey Abrams Multiply Her Net Worth In Just A Few Years?)
Americans Aren’t Buying Biden’s Tale Of Economic Recovery https://t.co/jOZJmn48A3
— Daily Caller (@DailyCaller) April 28, 2022
Analysts for Bank of America described this moment in the market as “paralysis rather than panic” as investors attempt to determine how the Fed’s long-term plan for rate hikes will impact holdings, Bloomberg continued. “‘Recession shock’ was priced-in too quickly; this is a problem as stronger-than-expected economic data in the first half is causing the market to price-in longer/bigger inflation/rates shock,” Hartnett wrote, according to Bloomberg.
Inflation hit 8.5% in March, the highest since 1981, according to the Post. BlackRock President Rob Kapito claimed that current and future rates of inflation will likely lead to upcoming shortages in labor and raw materials, removing everyday items from American shelves. In the latest Gallup poll, only 2% of Americans felt that the current economic conditions were “excellent.” More than three quarters of those surveyed felt that the economy was getting worse.