Several big Wall Street names predicted a temporary decline in the S&P 500 index (.SPX) which hit a new record this year.
The matter ‘confuses’ investors whether they want to take profits or vice versa.
Goldman Sachs recently expected the rise in U.S. growth in the second quarter to likely be linked to weaker stock returns.
Meanwhile, Morgan Stanley analysts early last week warned the stock market would face an uncertain situation.
Meanwhile, Deutsche Bank is projecting a 10% drop in market prices in the S&P 500 as growth weakens.
In addition, BofA Global Research also supports the year -end target for the index of around 8% below current levels.
No serious decline in the S&P 500 for a long time also made investors restless.
The S&P 500 has declined at least 5% every 177 days. The latest index showed a 211 -day increase with no decline.
However, the warnings issued by analysts sparked controversy among investors.
While many want to protect profits from an 85% rise in market prices since the lowest level when the Covid-19 pandemic hit last year, the fall in market prices over the past year has been unpredictable and followed by a sharp spike, sparking buying interest as stocks declined. and ‘hold’ among investors.
There are also investors worried about the country’s situation, worried about the increase in Covid-19 cases as well as the bulk of the economic benefits from the fiscal stimulus package impacting the market.
Last Thursday, several sources stated the White House would propose to impose a double tax on the rich.
