The stock market has flashed more red flags than green this year, as inflation hit a 40-year high. The Fed’s stringent monetary tightening has been burdening individuals and businesses with increased borrowing costs, thereby increasing the odds of the economy slipping into a recession.
With choppy waters ahead, the International Monetary Fund and World Bank warned of increasing risk of global recession next year. JPMorgan’s analysts forecast a ‘mild recession’ and expect the S&P 500 to test its 2022 lows during the first quarter of next year.
