Stocks & indices
Strategist warns S&P 500 could slump nearly 20% next year
S&P
Clocktower strategist Eric Wallerstein says the US stock market is 'priced for perfection' and the S&P 500 could slump nearly 20% next year.
He said that if the market is disappointed, safety-seeking investors could push money into gold, potentially driving its price to $6,000 an ounce.
For beginners Being 'priced for perfection' means a stock's current price already assumes very optimistic earnings expectations, so any disappointment can trigger a sharp drop. Gold is traditionally seen as a 'safe-haven' asset that attracts more demand during periods of market anxiety.