Pedestrians pass in front of a bull statue in New York City’s Wall Street neighborhood.
Doug’s Office | AFP | Getty Images
Stocks are expected to return significantly in the next three months, as macroeconomic growth gauge will hit its peak this summer.
Binky Chadha warned customers in a memo released Monday that he predicted that A “major consolidation” in the equity market will range between a 6% to 10% decline when the economic growth level closes.
He and Deutsche Bank measured cyclical macroeconomic growth with the Institute of Supply Management’s Manufacturing Index.
ISM growth “typically peaks about a year (10-11 months) after the recession ends at where we seem,” Chadha wrote in the past. On average -8.4%, but even when ISM flattened instead of falling, it saw sales average of -5.9%. “