Published on 10 May 2022 on Insider Monkey via Yahoo Finance
In this article, we discuss the stock market recession theories and the 10 stocks to sell now according to analysts. If you want to see more stocks in this selection, click Stock Market Recession 2022: 5 Stocks to Sell Now According to Analysts.
While the S&P 500 returned 27% to investors in 2021, the index has declined 15% year-to-date due to higher interest rates, geopolitical tensions, rampant inflation, and multiple other bearish factors. Michael Hartnett, chief investment strategist at the Bank of America, noted on May 9 that based on historical bear and recessionary macro backdrops, the stock market could be in for a turbulent ride for the next few months. If history is any indication, the current bear market will end in October 2022 with the S&P 500 at 3000 points, a further 25% decline from present levels.
The economy contracted in the first quarter of 2022, with growth slowing down and the unemployment rate at 3.6%. Dan Ives, managing director at Wedbush Securities, stated on May 9 that investors do not have a safe haven in the current market, as rates rise, inflation surges, and geopolitical tensions remain at an all-time high. In addition to that, fears of recession loom on the horizon. He also observed that it is a bear market for tech stocks. Oxford Economics is projecting growth to slow to 2%, but others are predicting an imminent recession.
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