Analysts expect at least four Fed rate cuts during the year

According to the monthly survey by Bank of America, over half (60%) of stock managers anticipate a minimum of four interest rate reductions from the Federal Reserve in the next year.

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Analysts expect at least four Fed rate cuts during the year © The Strategist

MarketWatch reports that 39% of respondents identified recession as the primary risk for their investment portfolios, with geopolitical conflicts coming in second place.

Currently, 76% of respondents anticipate a gentle decline of the U.S. economy within the next year, up from 68% in the previous month. The percentage of people expecting a recession has increased from 11% to 13%.

47% of respondents now believe there will be a decrease in the global economic recovery, up from 27% in July.

The survey findings indicated that investors are pulling money out of stocks overall, with a focus on Japanese stocks specifically. The proportion of investments in the U.S. stock market compared to Japanese stocks is at its highest point since November 2021.

source: marketwatch.com

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