A Wall Street guru predicted that the S&P500 could fall up to 30%: the causes

A Wall Street guru predicted that the S&P500 could fall up to 30%: the causes
A Wall Street guru predicted that the S&P500 could fall up to 30%: the causes

For Lukasz Tomicki, an analyst at LRT Capital Management, investors underestimate the power of inflation in the US.

A Wall Street guru predicted that the S&P500 could fall up to 30%: the causes

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A leading analyst said the S&P 500 could fall between 20% and 30%. Is about Lukasz Tomickihedge fund manager and founder of LRT Capital Managementwho also gave his reasons behind this strong warning.

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For him the key is the general price increase in the United States. At the moment, Inflation remains around 3%, exceeding the Federal Reserve’s 2% targetleading the central bank to keep interest rates high. “The market is very complacent with inflation”commented in an interview and stated: “I think we are very protected. The market could drop 20 to 30% from now on.”

“The growth of AI is good, but that doesn’t mean investors will benefit from just a few stocks because there is a lot of competition on the way,” Tomicki said. “The true limits to market mania have to do with inflation and oil prices”he added.

This week, inflation will take center stage with the publication on Friday of the Personal Consumption Expenditure (PCE) index), which shows whether price pressures continued to cool in April or not.

 
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