UBS - Stocks Could Crash 23% In 2024: UBS Analyst Warns These 3 Risks Could Potentially Trigger Plunge | Benzinga
UBS, a global financial services firm, has identified three significant risks that could potentially trigger a 23% plunge in the stock market this year.
What Happened: UBS’ chief investment officer for U.S. equities, David Lefkowitz, has outlined three potential risks that could lead to a significant downturn in the stock market in 2024, reported Business Insider.
The bank outlined a bearish scenario for the stock market, projecting a 23% decline in the S&P 500 to 3,700. This level is slightly above the low points recorded during the bear market in October 2022.
The first risk is a potential recession in the U.S. within the next six to 12 months. Lefkowitz said, “Central banks are forced to raise interest rates even more to keep them at lofty levels for longer than expected.”
He suggested that the cumulative effects of the Federal Reserve’s interest rate hikes and a decrease in household cash reserves could lead to an economic downturn in the latter half of 2024.
The second risk is persistently high inflation, which could disrupt the economy and consumer expectations of a decline in inflation, potentially ...