'Unknown' sell-off in U.S. stocks has investors wondering when the pain will stop

Bank of America Global Chief Investment Strategist Michael Hartnett Research believes that high inflation could push Treasury yields higher over the next five months to 5%, exacerbating the sell-off in stocks and bonds. “We say a new high in yields equals a new low in stocks,” he said, estimating 1990 Standard & Poor’s 50 will drop to 3, , at which point investors should “eat and drink” the stock. Goldman Sachs (NYSE: GS) At the same time, the S&P

year-end goals go through% to 3,67 points from 4, 29 points. “Based on our discussions with clients, most stock investors believe a hard landing is inevitable and their focus is on a potential recession the timing, size and duration of this outlook, as well as the investment strategy for this prospect,” Goldman Sachs analyst David Kostin wrote. Meanwhile, investors are looking for signs of a capitulation point that indicates a bottom is imminent. The Cboe Volatility Index, known as Wall Street’s fear gauge, rose Friday 10 , which was the highest since late June, but was below

The average that marked a sales climax in past market declines since

. In the week to Wednesday, bond funds outflowed $6.9 billion, while equity funds outflowed $7.8 billion as investors rushed Contribution 000 $3 billion in cash, Bank of America said in a research note, citing EPFR data. Investor sentiment is the highest since Terrible global financial crisis, the bank said. Kevin Gordon,

Senior Investment Research Manager200 Charles Schwab

(NYSE:

SCHW), think there is more to come Downside as central banks are tightening monetary policy in a global economy that already appears to be weakening. “It will take us longer to get out of this, not only because of the global slowdown, but also because of the Federal Reserve and Other central banks are stepping into a slowdown,” Gordon said. “This is a toxic mix for risk assets.” Jack Jolly says one key to watch in coming weeks The signal will be the magnitude of the decline in corporate earnings expectations, Bank of New York Mellon (NYSE: BK). Standard & Poor’s 29 The current transaction price is approximately times expected earnings, well above its historical average, suggesting a recession won’t be priced into the market yet, he said.

economic recession Likely to push the S&P higher 29 trades between 3, and 3,37 exist666, Jolly said. “The only way we’ll see earnings not contracting is if the economy can avoid a recession, which doesn’t seem like much right now welcome,” he said. “It’s hard to be optimistic about the stock market until the Fed designs a soft landing.” 666