Veteran analyst sends urgent message on S&P 500

The stock market has increased a lot of eyebrows recently. After he was severely beaten in early April after president Trump announced the introductory of April 2, the S&P 500 rose with double numbers on a great tour after Trump stopped most of the mutual definitions on April 9.

Dramatic climbing has occurred despite the fact that economic data indicating that the American economy is slowing down and amid the risk of increasing recession in the wake of the remaining customs tariffs, including a 145 % tariff for China and that obtained companies that re -evaluate their counterparts for this year.

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With the shares now returning to the place before it was announced by Trump’s tariff and the indicators of feelings that started to flash warnings, there is a good reason to ask whether there is still time to “buy dipping” or if investors have to switch gears and “sell Rip”.

The uncertainty caught the attention of veteran analyst at Wall Street Tom Dimark, whose career extends to nearly 50 years of major money management companies and hedge fund managers such as Goldman Sachs, Paul Tudor Jones, George Soros, and Lyon Cobman.

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During the five decades he spent in the market, Demark got a seat in the front row of many good and bad market tapes. Recently, it has made a bold prediction that may make investors uncomfortable.

The federal reserve has its full hands this year. It is charged with a double mandate to maintain inflation and unemployment low, but those goals often contradict each other, and this is especially true this year.

If the Federal Reserve raises interest rates, it can slow the economy, which reduces inflation. However, this causes job losses. Instead, if the Federal Reserve reduces interest rates, economic growth can add functions and increase inflation.

Related: Warren Buffett sends a strong message about trade, definitions

As a result, Federal Reserve Chairman Powell must walk on a tight rope on interest rates this year. The monetary policy at the Federal Reserve in 2022 and 2023, but the high unemployment prompted it to replace the gears late last year, and reduce interest rates in September, November and December.

Unfortunately, inflation has stopped, forcing the Federal Reserve on the margin even with workers climbing and diluting GDP.

The consumer price index was 2.4 % in April, and it did not change last September. Meanwhile, the unemployment rate increased to 4.2 % of 3.4 % in 2023.

In April, companies announced 105,441 layoffs, an increase of 63 % on an annual basis. This earns functional losses from year to about 602,000, an increase of 87 %, according to Challenger, Gray & Christmas.