Despite sky-high prices and consecutive rate hikes, the economy seems resilient. The labor market remains tight, with a less than 4% unemployment rate. Moreover, the third quarter GDP increased by 2.6% at an annualized pace, better than expected. This has somewhat eased recession worries.
In addition, experts remain hopeful of prices coming down. Fundstrat’s head of research, Tom Lee, opines that inflation indicators, like housing prices, are witnessing a decline, and the Fed could soon soften its pace of rate hikes. Moreover, according to Morgan Stanley’s Mike Wilson, investors could see the bear market to end as soon as early next year.
