Deutsche Bank warns of a bear market in 2023

[Silver Ridge Market Report Logo] [Privacy Policy]( | [Advertiser Disclosure]( Dear Reader, Deutsche Bank made waves when its economists became the first of the major Wall Street analysts to say the U.S. economy would soon go into recession. “Two shocks in recent months…have caused us to revise down our forecast for global growth significantly,” Deutsche Bank economists, led by David Folkerts-Landau and Peter Hooper, wrote in a 68-page note to clients. “We are now projecting a recession in the U.S. and a growth recession in the euro area within the next two years.“ To be clear, this does not represent a consensus call. Most economists are still seeing the tailwinds overwhelming the headwinds. But it does reflect mounting concerns about the economy, especially as the Federal Reserve moves aggressively to cool business activity in its efforts to fight inflation. As you’re well aware of, recessions are not great for stocks. The S&P 500 has on average fallen by around 20%-30% during these periods. Deutsche Bank sees the stock market following the historical playbook. From the bank’s equity strategist Binky Chadha (emphasis Chadha’s): We maintain our forecasts for the S&P 500 (5250) and the Stoxx 600 (550) for year-end 2022; with a typical recession correction of 20% in late 2023. Our projections for equity demand-supply this year suggest equities should be well supported by strong inflows, a recovery in positioning to at least somewhat above neutral and buybacks, but this support should start to slow with growth in the second half of next year. We see some but limited impacts on European earnings from the Russia-Ukraine war and multiples recovering. In 2023, we expect equity markets to hold up well through the summer before the US falls into recession and for equities to correct by a typical 20% as it begins, before bottoming half-way through and recovering prior levels. It may be easier for clients to swallow a 20% drop in stock prices when you call it a “correction.” But in case there’s any confusion, a 20% decline is more popularly referred to as a bear market. Editor, Silver Ridge Market Report Andrew Graham [A Graham Signature] [Privacy Policy]( | [Advertiser Disclosure]( P.S. [117X Bigger Than Electric Cars, AI, and Blockchain]( “Liquid energy” is promising to trigger an energy revolution 117 times bigger than all the hottest tech trends combined… It’s so promising… The world’s richest billionaires are investing in one tiny company behind it. Including Bill Gates, Jack Ma, Richard Branson, Michael Bloomberg, & Jeff Bezos. Best part… Right now, this tiny company behind “Liquid Energy” trades for around $4. [Click here for the full story]( [Privacy Policy]( | [Advertiser Disclosure]( 406 Media and Silver Ridge Market Report, is not giving individualized financial advice. Never invest more than you are willing to lose. 406 Media or Silver Ridge Market Report is not giving financial, investment, or stock advice. Our content is designed for generalized informational purposes only. If you have specific questions about investments or stocks you should consult a financial advisor. Articles, News, Or Other published materials are not always the views of 406 Media and/or Silver Ridge Market Report. If you feel you are receiving these emails in error please email Support@SilverRidgePro.com or click the unsubscribe button below. 30 N Gould St, STE R, Sheridan WY 82801 This e-mail has been sent to {EMAIL}, [click here to unsubscribe](.