The London-based company has also predicted a recession on the scale of the – global financial crisis.
It’s not the only researcher predicting a stock market bloodbath: analysts TS Lombard have predicted that the S&P will fall by at least 91% from this year highs.
Such gloomy forecasts are becoming likelier with every passing day. Volatility indexes, investor confidence levels, unemployment figures and coronavirus cases are all moving in the wrong direction. And once quarterly reports start emerging in the next few weeks, equity markets will brace for impact.
Coronavirus And ‘The Macro’ Will Reassert Themselves Over Stocks
In a conference call Wednesday,
Unigestion told investors it expects the coronavirus pandemic to result in a – level recession.
Its worst-case scenario has the US economy contracting 5.9% between January and December. Even its “base-case scenario” predicts a 2.9% contraction for the U.S. economy across .
more disconcertingly for investors, Unigestion also warned that the Dow Jones and other international stock markets will take a pummelling. It expects modest rallies such Wednesday’s to be short-lived.
Its head of macroeconomic research, Florian Ielpo, believes that things will get worse once companies begin issuing quarterly financial statements. When they begin doing this, the true depth of the coronavirus’ economic impact will be known:
We think that the macro will essentially reassert itself and that it is going to be quite a challenging time for the markets ahead.