The stock market's euphoric rally has been a head fake, Wall Street's top strategists warn
The year kicked off with a euphoric rally for the US stock market, but that's about to crumble, numerous Wall Street analysts warn.
As stocks sputter amid renewed inflation concerns, top analysts on Wall Street have been ringing the alarm this month that the rally of the last six weeks was nothing more than a head fake. , traders are behaving like climbers who blindly push towards the peak of Mount Everest without accounting for the risks involved.
has said he is also skeptical of the market's gains so far in 2023. The continued upside in stocks won't last because above-trend growth and a soft landing have already been priced into US equities. "Even if a soft landing comes to fruition, as in our baseline forecast, such an outcome should not lead to substantial equity market upside," Kostin wrote in a client note earlier this month.
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