The Lingering Impact of the 2008-2009 Great Recession, along with the ongoing Covid-19 crisis, continues to afflict the US economy, sparking concerns over financial stability.
Canadian investment firm BCA Research has issued a warning about the impending instability in the US stock market. Peter Berezin, Chief Global Strategist at BCA Research, predicts a potential recession by the beginning of 2025, foreseeing the S&P 500 to plummet to 3,750 points, a 30% decline from current levels. He attributes this to the expected slowdown in the labor market, which will impact consumer spending, a crucial driver of economic growth, and highlights the complex relationship between inflation and unemployment.
A financial expert suggests that the US could potentially enter a recession as early as 2025. Berezin also highlights global economic challenges, including the slowdown in growth in China and Europe, which could further pressure international stock markets.
Despite the Dow Jones Industrial Average reaching record highs in mid-May, recent market fluctuations have cast a shadow over future prospects. This pessimistic outlook comes after a tumultuous year for financial markets.