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Stagflation to plague global economy in 2023, keeping stocks on edge
Inflation not stopping consumers from spending: Andy Puzder
Former CKE Restaurants CEO Andy Puzder discusses whether persistent inflation will lead to a weaker Christmas retail season on ‘Varney & Co.’
An overwhelming majority of Wall Street investors anticipate that stagflation will pose the biggest risk to the global economy in 2023, continuing to create volatility in the stock market.
That's according to a recent Bank of America pulse survey, which found that 92% of fund managers expect a period of high inflation and low economic growth next year, while 0% are forecasting a Goldilocks scenario, in which the economy avoids a recession and inflation slows.
"Investor sentiment remained uber-bearish," the survey said. "Investors kept cash levels high at 6.2%, just below last month’s 21-year peak of 6.3%. Additionally, net 77% are calling for a global recession."
The responses indicate the stock market could be in for another rocky year after central bank tightening, stubbornly high inflation and the Russian war in Ukraine already sparked a multitrillion-dollar carnage.
FED MAY NEED TO HIKE INTEREST RATES ABOVE 6% TO CRUSH INFLATION, LARRY SUMMERS SAYS