Signal tells when stock market will hit bottom

Fox News contributor Liz Peek says the U.S. economy is looking ‘pretty ugly’ as inflation takes hold. The stock market has gotten obliterated in a widespread selloff this month, and equities are likely to see further losses before the Federal Reserve signals that the conclusion of monetary tightening, according to Goldman Sachs strategists. In an analyst note this week, Goldman strategist Vickie Chang said the stock selloff may not reach bottom until policymakers at the central bank signal they are finished with raising interest rates — something that may not happen until a recession is imminent. S&P 500 FALLS INTO BEAR MARKET, JOINS NASDAQ“It may be necessary for the market to become more confident than it is that financial conditions tightening has been sufficient and that the Fed has delivered and signaled enough tightening,” Chang said in a note on Monday. “Monetary policy has historically stopped tightening about three months before equities bottom, and shifted to easing about two months afterwards.” In this Dec. 13, 2016, file photo, the logo for Goldman Sachs appears above a trading post on the floor of the New York Stock Exchange. The Goldman Sachs Group Inc. reports earnings Tuesday, Oct. 16, 2018. …

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