Archive for June 15th, 2022

How low can the stock market go?

June 15, 2022

We don’t give investment advice, but …

Just before the 2020 election, we posted a JP Morgan’s stock market forecast.

At the time, JPM advised clients that the S&P could nosedive to 2,500 (down 25% from its level at the time) if there was a “Blue Wave” with Biden getting elected and Dems taking both the Senate and the house. See the bottom right quadrant of the below matrix.

image

At about the same time, a B of A analysis concluded that a Blue Wave would be good for the market.

The post-lockdown surge in stock prices made B of A look like savant seers … and JPM’s forecast look downright silly.

Now, it’s looking like JPM had the fundamentals right … but were ahead of the curve.

Draw your own conclusion.

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P.S. A 25% drop from the 3,850 S&P peak would put the S&P at about 2,900.

Fasten your seatbelts.


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