Peter Berezin, a well-known strategist, was among the few who believed economic growth would be stronger than expected. In 2023, he correctly predicted “immaculate disinflation,” where inflation dropped without causing major harm to the economy. This optimistic view kept him positive about stock markets.
Now, however, Peter has changed his outlook. He believes the U.S. will enter a recession in 2025, and he predicts the S&P 500 will fall to 4450 by the end of that year. This makes him the most pessimistic forecaster in Bloomberg’s latest survey.
BofA’s Hartnett Warns of Overvaluation in Stocks
Michael Hartnett from Bank of America has issued a warning about potential overvaluation in U.S. stocks and cryptocurrencies. He highlights that the S&P 500’s price-to-book ratio has reached 5.3x, which is dangerously close to the 5.5x level observed during the peak of the 2000 tech bubble. Hartnett suggests there is a risk of a significant “overshoot” in the market in early 2025 if the S&P 500 were to rise by 10% to hit the 6,666 mark. This increase could further signal excessive market exuberance and a potential correction.
