Banking giant issues warning of imminent 10 drop in SP 500
Despite a generally strong performance, there have been increasing warning signs indicating the fragility of various aspects of the economy in recent months. Piper Sandler, a prominent investment banking firm, has raised concerns through its chief market technician Craig Johnson. According to Johnson’s note, he predicts a 10% correction for S&P 500 in the summer of 2024.
These warning signs include a lack breadth and a slowdown in momentum, suggesting that the growth observed since January may not be sustainable. However, many investors remain oblivious to dangers due to their fear of missing out (FOMO).
Given the significant rise stock prices and optimistic price targets for some stocks this year, traders are eager to capitalize on this as long as possible. Despite certain risks being well-documented – such as market concentration similar to 1929 and concerns an overheated artificial intelligence (AI) sector – bearish analysts have become increasingly rareEven JPMorgan’s Marko Kolanovic, who was previously one of Wall Street notable bears with the lowest S&P 500 price target at 4,200, has acknowledged market sentiment. Piper Sandler still maintains a relatively high price target for the benchmark index around 5,050 by the end of 2024.
It should be noted that while recents in major stocks and even crypto markets may cause concern, they do not necessarily indicate an impending crash. Instead, they could be seen as common corrections following substantial overall this year.
Please be aware that investing carries risks and should not be considered specific investment. Your capital is at risk when investing.
