Is a Nasdaq Bull Market Coming In 2023? Here's What History Says
The Nasdaq Composite dropped into a bear market in late 2021, and the tech-heavy index is still 27% off its high. Economic uncertainty brought on by high inflation and rising interest rates played a major role in that decline.
The annual inflation rate hit 8% last year, double the five-decade average, prompting the Federal Reserve to raise its benchmark rate at its fastest pace since the early 1980s. But some economists are worried that central bank policymakers are acting too aggressively. Overtightening could tip the economy into a recession.
Indeed, despite recent turmoil in the banking industry, the latest projections from the Federal Open Market Committee indicate that most central bank officials expect one more quarter-point rate hike (and no rate cuts) in 2023. Analysts at JPMorgan Chase believe that will contribute to weak economic growth, and they estimate the odds of a U.S. recession at greater than 50% this year.
Source Fool.com
