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Stock market outlook: JPM, BofA turn cautious, Grantham warns of pain

Sep 17, 2023 - markets.businessinsider.com
Investors are growing increasingly cautious about the US stock market and the economy as 2023 approaches its final quarter, leading to a more defensive approach. Wall Street banks such as JPMorgan and Bank of America, as well as experts like John Hussman, are among those adopting this cautious stance. The S&P 500 share index is heading for its first two-month decline in a year, with concerns about high interest rates, dwindling household savings, and rising consumer debt potentially impacting stocks and the wider economy.

Six top voices in the market, including JPMorgan, Bank of America Merrill Lynch, John Hussman, Ken Griffin, Mike Wilson, and Jeremy Grantham, have shared their relatively downbeat outlooks. The common thread among their views is the anticipation of a contracting US economy, the risk of a recession, and the potential for market volatility. They advise a defensive investment approach, emphasizing diversification across asset classes.

Key takeaways:

  • Investors are becoming increasingly cautious about the US stock market and economy as 2023 approaches its final quarter, with Wall Street banks like JPMorgan and Bank of America adopting a more defensive investment approach.
  • The S&P 500 share index is on track for its first two-month decline in a year due to concerns over high interest rates, dwindling household savings, and rising consumer debt.
  • Experts such as John Hussman, who predicted the 2000 and 2008 crashes, have warned of potential pain ahead for stocks.
  • Top voices in the market, including JPMorgan, Bank of America Merrill Lynch, John Hussman, Ken Griffin, Mike Wilson, and Jeremy Grantham, have expressed relatively downbeat outlooks for the economy and stock market.
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