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The Stock Market Is a Hot Mess. 5 Experts Predict What’s Next
This story is part of Recession Help DeskCNET’s coverage of how to make smart money moves in an uncertain economy.
Investors were left spinning again this week as the stock market dropped into bear territory once more. global uncertainty, high inflation and rate hikes have marked a dizzying year for the market.
Now we’re wondering: What comes next?
With inflation still uncomfortably high and another aggressive rate hike expected from the Federal Reserve next month, the market is likely in for a bumpy ride.
“Investors should brace themselves for more market volatility,” said Mahesh Odhrani, certified financial planner and president of financial planning firm, Strategic Wealth Design.
The market’s short-term fate is contingent on multiple factors, so any predictions about what comes next are simply educated guesses. The Fed has raised interest rates five times this year in an effort to curb inflation. Now, a recession seems more likely than a “soft landing,” according to Federal Reserve Chair Jerome Powell. And though it’s impossible to say how deep that recession might be or how long it will last, such a downturn will definitely inflict more pain across the board, including an uptick in unemployment.
While experts indicate a light at the end of the tunnel, the market usually gets worse before it rebounds. Here’s what five experts said is likely to happen as 2022 comes to a draw and we brace for 2023.
Where experts predict the stock market is headed
Market uncertainty will persist.
“Investors