September 26, 2022
Wall Street is as baffled by stocks as ever

Fast dip: Traders are seen working on the floor of the New York Stock Exchange. Stocks that fell last week sent the S&P 500 to its longest streak of weekly slides in 21 years. — AFP

NEW YORK: Seven straight weeks of losses for American stocks and now a narrowly averted collision with a bear market have left Wall Street prognosticators as lost as they were during the coronavirus crash.

First and foremost is the Federal Reserve (Fed), bent on wringing excess from the economy. Add to that war, snarled supply chains and equity valuations that were recently at two-decade highs.

The result has been a wide variance in predicted outcomes. After another six strategists slashed year-end calls for the S&P 500 this month, the gap between the highest and lowest projection sits at 37%.

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