Stocks 'Remain Pricey,' Says Top Economist Steve Hanke: 'Multiples Will Come Off As The Recession Starts To Bite'
Portfolio Pulse from Benzinga Neuro
Economist Steve Hanke predicts a recession and a stock market downturn, with inflation falling below 2% by the end of 2024. He believes the stock market is overvalued and will decline as the recession impacts, with the S&P 500 index currently trading near an all-time high. Hanke attributes unstable inflation to changes in the U.S. money supply. Despite a majority of top investors expecting a 'soft landing' for the U.S. economy, Hanke's view contrasts with this optimism, suggesting caution in the market.
January 19, 2024 | 5:40 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Apple Inc. may face a decline in its stock price if the predicted recession and market downturn materialize, as suggested by economist Steve Hanke.
As Apple Inc. is part of the Mag7 stocks favored by investors, a market downturn as predicted by Hanke could lead to a decrease in its stock price, especially if earnings multiples contract.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Amazon.com Inc. could potentially see its stock price affected negatively in the short term if the recession predicted by Steve Hanke comes to pass.
Amazon.com Inc., being one of the Mag7 stocks, may experience a decline in its stock price due to the expected recession and the associated reduction in earnings multiples.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70