Posted 2/15/2024, 3:38:00 PM
Investor optimism tempered by recession warnings and market vulnerability
- Emotion and FOMO, not fundamentals, are driving the stock market gains
- While inflation has cooled, the economy still faces issues like rising unemployment and consumer debt
- Recessions over the past 25 years have caused 36% drops in the S&P 500 on average
- Even a mild recession could send the S&P 500 down over 30%, according to Dietrich
- Despite recession warnings, investors remain optimistic with 42% reporting a bullish 6-month outlook