Stocks facing rough ride with below-average returns predicted, comparable to Wile E. Coyote moment

From Yahoo Finance: 2025-07-01 10:12:00

Stocks are in for a rough ride, warns the bearish BCA Research team. They predict below-average returns for the S&P 500 in the next 1-3 months. Chief strategist Peter Berezin compares the market to the Wile E. Coyote cartoon, running off a cliff. BCA’s current recommendation is underweight on U.S. stocks.

Berezin forecast a 4,450 year-end finish for the S&P 500, but wouldn’t buy unless it dropped below 4,200. The index hit record highs recently, but BCA is concerned about weak economic data and consumer spending. They also worry about tariffs and budget deficits impacting investors negatively.

BCA’s MacroQuant equity model favors certain sectors like materials and utilities, but is underweight on financials and tech. They prefer equity regions like Canada and emerging markets, but see challenges ahead with the current economic and political landscape. Markets await crucial jobs data to gauge the stock market’s future direction.



Read more at Yahoo Finance: The S&P 500 is approaching a Wile E. Coyote moment, says Wall Street’s biggest bear