FS Investments Chief Market Strategist Troy Gayeski Says, the stock market is heading for a sharp setback that could see the S&P 500 plunge about 22% over the coming quarters. Despite being up about 8% in 2023 on hopes that the Federal Reserve will soon end interest-rate increases, investors are advised to start selling their holdings now. Gayeski believes that this is a golden opportunity to use this bear market rally to de-risk in advance of potentially very painful losses over the next six, nine, or 12 months.
Key Points to Note:
- The S&P 500 index could potentially tumble 22% in the coming months, so investors should not wait any longer to exit the stock rally.
- The recent rally has been driven by technical factors and narratives, but recessions are not necessarily bad for revenue or earnings.
- Experts such as Jeremy Grantham and Morgan Stanley's top stock picker Mike Wilson have warned that the rally is unlikely to last.
Troy Gayeski says that the strongest rallies have always been in bear markets, which are usually driven by technical factors. He thinks that the recent narrative surrounding inflation slowing down and the potential for a recession doesn't make sense.
While the S&P 500 has advanced about 8% this year, Gayeski expects the bear market to be meaningfully worse than the 2018 correction or the shocks experienced in the post-Great Financial Crisis period, but not as bad as the financial crisis.
In conclusion, investors are advised to use this bear market rally to de-risk and avoid potentially painful losses over the coming months. Gayeski recommends selling US stocks now to avoid the S&P 500's potential 22% plunge.
A Personal Note from the Desk of the CEO
Welcome to iShook Finance, the premier finance news journalistic platform that brings you the most relevant, timely, and insightful information in the world of finance. As the CEO and founder, I am proud to share my vision and values with you, so you can better understand what drives our passion and commitment to delivering outstanding financial news.
At iShook Finance, we believe that the world of finance is more than just numbers and spreadsheets; it's a living, breathing ecosystem that connects people, businesses, and governments. Our mission is to empower individuals and organizations to make informed decisions by providing accurate, in-depth, and thought-provoking financial journalism.
My personal journey in the world of finance has been marked by curiosity, a relentless pursuit of knowledge, and a deep desire to share insights with others. As a finance enthusiast, I have always been passionate about understanding the intricacies of the global economy and the forces that shape it. With iShook Finance, my aim is to create a platform where our readers can access a wide range of perspectives, opinions, and expert analysis that will guide them through the ever-evolving financial landscape.
Our team of dedicated journalists, analysts, and editors work tirelessly to bring you the most accurate and up-to-date information. We take great pride in our journalistic integrity and adhere to the highest ethical standards, ensuring that our content is always unbiased, balanced, and data-driven.
At iShook Finance, we recognize that the world of finance is not a one-size-fits-all scenario. Our readers come from diverse backgrounds with unique financial goals and concerns. As such, we strive to provide a variety of content that caters to the needs of both seasoned professionals and novice investors alike.
In today's fast-paced digital world, it is essential for us to stay ahead of the curve. We are committed to embracing emerging technologies, trends, and innovative storytelling methods to ensure that our content remains engaging, relevant, and accessible to our audience.
As the CEO, my promise to you is that iShook Finance will continue to evolve and grow, staying true to our core mission of providing reliable and insightful financial news. I invite you to join us on this journey and share your thoughts, questions, and feedback with us. Together, we can redefine the way financial news is delivered, consumed, and understood.
Thank you for choosing iShook Finance as your trusted source for finance news.
Beni E Rachmanov
CEO & Founder,