(Bloomberg) — The US stock market may suffer a correction in coming months as the economy slows, according to Deutsche Bank AG.
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The world’s largest economy may post 0.8% annual growth this year, down from a forecast of 2.3% for 2023, said Christian Nolting, Deutsche Bank’s global chief investment officer. As that deceleration seeps into the stock market, a drop of 5% to 10% from current levels is likely to occur in the near term, he said.
“There’s literally no discussion about recession in the US at all,” Nolting said in an interview in Singapore. “There’s a reality check coming this year” for equities.
US stocks haven’t shown many signs of a slowdown lately. The S&P 500 and Nasdaq 100 both closed at all-time highs on Tuesday. Equity investors have largely shrugged off caution by Federal Reserve officials that their expectations of interest-rate cuts are too premature and confident.
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