Stock market prices could rebound by as much as 30% from a sell-off in 2017, according to the latest forecast from Standard & Poor’s.
That’s down from a 70% bounce in 2018, and is the most optimistic prediction the credit rating agency has made in a year.
The outlook is the same as the one the agency issued just three weeks ago, which said the market would bounce back by 25% from 2018.
The stock market is expected to reach a record high in 2019, and the outlook has shifted slightly since that report.
The reason for the shift is that, according in the latest report, the Federal Reserve is not considering any further quantitative easing until the economy is stronger.
But if that means lower interest rates, the markets could move back up by up to 50%.
It’s not clear when that could happen.
For now, investors should take this news with a grain of salt.
Investors should be cautious in forecasting the market’s bounceback.
The U.S. stock market has been trading at historically high levels.
The S&P 500 is up by more than 2,500% over the last year, and stocks in the technology and telecom sectors have grown faster than the broader economy.
However, even after the Federal Government raises interest rates by an additional 1.5%, stocks will still have to rally by a hefty margin to make up for the shortfall in GDP growth.
And if the market continues to fall, stocks will probably take a hit as well.