- After the Dow hit bottom on March 30, it rebounded with five days of gains.
- The Dow has risen despite record jobless claims and other dreadful numbers, but the rally won’t last.
- The worst is still to come as the Dow could plunge as low as , .
For those who think the Dow has already reached a bottom, don’t be so sure. More pain is coming in the stock markets.
The Dow Could Plunge As Low As
, according to James McDonald, CEO of Hercules Investments , stocks should have at least one more major correction. Investors need to realize for good that the U.S. economy is in a deep recession that won’t end anytime soon. He believes the Dow – which is currently above , – could plunge to as low as , (before rebounding.
Morgan Stanley’s economists also expect the recession to last longer than they initially projected:
We expect the US economic recovery will be more drawn out than previously anticipated, marked by a deeper drop into recession and slower climb out.
Morgan Stanley forecasts a % drop in US GDP in the second quarter , down from its previous forecast of 50%.
The rebound will likely not be as sharp as many had hoped. Consumer confidence will decline further
as the economy collapses amid the coronavirus pandemic. As the US economy has such a dark outlook, it wouldn’t be surprising to see the Dow plunge to 23, 06 in the near future.
The above should not be considered trading advice from CCN.com. The opinions expressed in this article do not necessarily reflect the views of CCN.com.
This article was edited by Aaron Weaver
(Now Watch: CCN TV
in Business
GIPHY App Key not set. Please check settings