Stifel predicts a 10% drop in S&P 500 by October due to inflation and slower growth.

From Investing.com: 2024-07-15 08:17:00

Stifel analysts predict a 10% drop in the S&P 500 by October 2024 due to inflation and slower economic growth. They revise the target to 5,000 from 4,750.

The forecast adjustment is driven by “moderate stagflation,” negatively impacting equities, especially S&P 500 Growth over Value. Stifel recommends defensive value sectors like Healthcare and Consumer Staples.

Key points supporting the forecast include a slower economy, inflation, and defensive value sectors outperforming the broader market. Stifel also notes speculative froth in , indicating a potential 10% S&P 500 correction.

Stifel highlights underestimated risks from global populism, cautioning against over-enthusiasm for new technologies like AI shaping S&P 500 returns over the next decade.



Read more at Investing.com: Stifel reaffirms its forecast that S&P 500 will drop 10% by October By Investing.com