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Why Wall Street’s biggest bear is expecting a 14% stock-market pullback before the end of 2025 - MarketWatch

1. Stifel warns of a potential stock market slowdown ahead. 2. S&P 500 may drop 14% due to lofty valuations. 3. Rising prices could dampen consumer spending and economic activity. 4. Market approaching 'mild stagflation' may echo April’s turmoil. 5. Investors advised to consider defensive stocks like Philip Morris.

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FAQ

Why Bearish?

The projection of a 14% decline indicates a significant decrease in S&P 500 valuations, reminiscent of past market corrections where elevated valuations preceded notable downturns.

How important is it?

The analysis from Stifel stands out due to negative sentiments amid previously high market enthusiasm; such contrarian views can significantly impact investor sentiment and behavior.

Why Short Term?

As the economy shows signals of cooling, immediate market responses from investors concerned about high valuations are expected in the short-term.

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