Stock Market Won't Rise This Year, According to This Expert

stock market bull and bear
monsitj / iStock via Getty Images

Where will the stock market end the year? In the same place it is right now, according to one expert. An equity market expert from Goldman Sachs commented to Bloomberg. David Kostin looked at the economy, earnings, and his forecast for gross domestic product. That GDP prediction was for only 3% growth this year. Other economists have been more optimistic because of a low jobless rate and robust company earnings.

Kostin’s view of corporate earnings is dim because he does not see improvement across all sectors. “The probability of a multiple expansion, while possible, is less probable,” he told the news service.

Kostin is not alone. Several experts believe inflation is too hot for the Federal Reserve to reduce interest rates. That means mortgages and car loans will be unaffordable for some people, and companies may struggle to raise new capital. Oil prices may increase because of tensions in Ukraine and the Middle East.

Earnings are another matter. Much of the increase or decrease in the major stock indices is based on the performance of a few companies, most of which are in the tech sector. It may be difficult for the stock market to advance if a few of these stocks stumble.

Finally, there are the stock markets themselves. They have advanced little since mid-April. They dipped some toward the end of the month but have yet to stage a robust recovery.

S&P 500 Price Prediction in 2030: Bull, Base, and Bear Forecasts

Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)

Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.

Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.

Click here now to get started.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.