© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
NEW YORK – UBS has issued a warning that the may be at risk of a significant downturn, potentially exceeding 20%, with a possible slide to around 3,700 points. This cautionary outlook stems from a trio of major concerns: the increasing possibility of a U.S. recession, sustained high inflation that could lead to stagflation, and growing geopolitical tensions, particularly in Ukraine and Taiwan, with potential repercussions for global energy markets.
The financial institution’s alert highlights the combined impact of the Federal Reserve’s interest rate hikes from the past and the ongoing inflationary pressures that may hinder the Fed’s ability to implement anticipated rate cuts. This precarious situation raises the specter of a stagflationary environment, where slow economic growth coincides with high inflation, and…
