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Alexandra SemenovaFortune |
“Market concentration has been very high, and positioning extended, which are typically red flags, at risk of a reversal.”
The type of high-level S&P 500 performance seen in the decade prior to 2021, “is gone for a generation,” the bank warned.
The S&P 500 Index is set to drop to 4,200 by the end of 2024 — roughly 8% from its current level, the bank said.
Investors are flocking to firm that are readily able to pay their interest expenses with their earnings.
Clothing retailers, skewed toward the young, face strong headwinds. But cruise lines, beloved by boomers, are doing well.
"One doesn’t get hurt falling out of a basement window,” one forecaster said.