These are the 3 big risks to the stock market, economist says
From CNBC: 2024-05-22 16:16:03
The U.S. stock market faces risks like Federal Reserve policy, potential recession, and lower-than-expected company earnings, according to economist David Rosenberg. Stock indexes hit record highs, with S&P 500 and Nasdaq up 11% each in 2024.
Nvidia, a key player in driving markets higher, has seen a 90% rise in 2024 alone, thanks to generative AI. The company’s earnings report could impact the market significantly. Fed’s high interest rates are another factor to watch, with uncertainty looming over the economy and geopolitical situations.
If a recession occurs unexpectedly, it could pose a significant threat to the stock market. Both economic and geopolitical uncertainties are factors that investors dislike. Experts advise long-term investors to stay in the market despite challenges, citing the success of staying invested longer for the wealthiest investors.
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