Amid the Fed’s persistent monetary policy tightening, market volatility is rife, as is evident from the CBOE Volatility Index’s more than 70% increase year-to-date. The major stock indices have lost significantly since the Fed’s 75-basis-point interest rate hike for the third consecutive time.
According to Guggenheim’s chief investment officer Scott Minerd, the S&P 500 could plunge 20% by mid-October 2022. However, he believes that a supportive Fed amid falling stock prices should lead to a year-end recovery that could last into early 2023.
