Wall Street Is as Baffled by Stocks Now as It Has Ever Been
- Gap in strategists’ highest and lowest S&P 500 targets is 37%
- Big drop in staples, wild swings in risky tech fuel confusion
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Seven straight weeks of losses for American stocks and now a narrowly averted collision with a bear market have left Wall Street prognosticators as lost as they were during the coronavirus crash.
While this episode may lack the pandemic’s shock, it makes up for it in the sheer number of cross-currents. First and foremost is the Federal Reserve, bent on wringing excess from the economy. Add to that war, snarled supply chains and equity valuations that were recently at two-decade highs.