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Markets are approaching Game Over, according to BofA

Negative estimates for the course of the stock markets increase.

Following Morgan Stanley's prediction of a -20% correction to 3,500 on the S&P 500 barometer and Roubini's warning that a major stock market correction is imminent... Bank of America has issued yet another warning that the game is coming to an end.

The coming global shock will cause a breakdown in technology stocks, the countdown to the recession has already begun, and a major systemic event will occur that will generalize the correction wave...

Interest rate shocks are global, according to Bank of America, and the failure of technology companies can cause systemic damage. Fears of a recession are beginning to prevail.

The stock of Facebook, now known as Meta platforms, has dropped to $ 237 from $ 323 on February 2, 2022, and a 52-week high of $ 384.

The market capitalization is $896 billion.

Amazon, on the other hand, ended the year with a profit of 15%, the highest since 2015.

The general belief among investment banks is that after a long period of uptrending, a new period of unfavorable conditions for stock markets emerges.

The recession will come as a result of the slowdown in growth, rising interest rates, rising bond yields, falling stock markets, and stagnant inflation.

According to Bank of America, the trend is radically changing; from 2010 to the beginning of 2022, the upward scenario dominated, despite shock events such as the covid 19 pandemic and lockdowns in March 2020.

From now on, a new period of increased risk will begin, with a systemic event leading to a radical revaluation of stock prices; in most cases, there will be epic deflation in the shares.

In terms of interest rates, the majority of investment houses predict that the Fed will raise rates from 0% to 0.25 percent in the United States, while the ECB will raise rates in 2022.

In the long run, interest rates on the euro could rise above 1% to 1.25 percent, while those on the dollar could rise above 1.75 percent, possibly even 2 percent.

Raising interest rates will benefit banks and their profits, but it will put an end to cheap money, government and corporate bond issues...

Other investment houses do not rule out the possibility that the increase in public debt has a negative impact on the economy because deficits have also increased... Debt crises emerge.

Greece, Italy, and other countries like Sudan are in a precarious situation...



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