S&P 500 to Hit 5,000 in 2023: Strategist

The average equity strategist is predicting a decline for the S&P 500 in 2023 as recent wage and services data suggest inflationary forces still grip the economy, boosting chances of higher rates.

Wall Street watchers are sounding the alarm ahead of next week’s Fed policy meeting, warning that the outlook for the US economy in 2023 is grim.

Top bank CEOs from Goldman Sachs Group Inc.’s David Solomon to JPMorgan Chase & Co.’s Jamie Dimon recently shared their dire predictions of a possible recession.

“I don’t ever remember a time when the CEOs in this country are almost 100% universal that we are going to have a recession,” Paulsen said. “Usually, recessions are something that comes out of left field and surprises the market. That’s not going to happen here.”

However, Paulsen said he thinks the U.S. can still avoid recession.

“There is too much pessimism,” he said. “Too much has already been discounted and that opens the door for a positive surprise and people have to catch up.”

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