Many of the world’s largest investment banks have warned throughout 2023 that the stock market is vulnerable to a downturn as the Federal Reserve continues its battle with inflation. But despite the pessimistic forecasts and rising interest rates, the S&P 500 has returned more than 8% to investors this year and the economy has been remarkably resilient. The Federal Reserve Bank of Atlanta now expects U.S. GDP growth to hit 2.5% in the first quarter after the unemployment rate remained near a record low in March at 3.5%. As a result, some Wall Street veterans are turning bullish.
James Demmert, founder and chief investment officer of investment firm Main Street Research, which manages roughly $2 billion in assets, told Fortune Monday that he believes stocks are in “the last phase of the bear market and investors should be wading into great companies that sell at reasonable valuations.”
