Here's why peak inflation might not signal the end of the bear market in stocks
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Phil Rosen
Aug 9, 2022, 17:21 IST
Traders work on the floor of the New York Stock Exchange (NYSE)Spencer Platt/Getty Images
Howdy markets people. Phil Rosen here in Los Angeles. Officially, I'm a senior reporter, but I'm tempted to change my title to "Bear Whisperer" because that's really what I spend much of my time doing lately.
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I've been reading bleak market forecasts and talking to pessimistic analysts at a higher clip than usual, and I've really honed an eye for bears.
Today I'm breaking down what two top banks expect to happen on the Street in the coming months — one of which doesn't see the bear market ending soon.
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But that doesn't mean it's time to signal all-clear.
Declining prices are going to drag on corporate profits in the opposite way rising inflation boosted them, the strategists added, and markets are underestimating the impact of an inflation reversal.
3. On the docket: Emerson Electric Co., Sysco Corp., and Alcon AG, all reporting.
4. Goldman Sachs recommends this batch of highly profitable stocks that are poised to out-earn their peers. While investors grapple with their fears of a recession and a tight labor market, the bank said to focus on these 15 companies even as profit projections fall.
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5. The oil market is set to tighten rapidly as winter approaches. An energy expert explained how crude prices remain on track to surpass $120 a barrel once again as supply constraints continue to choke energy markets. Here's what you want to know.
7. Russian crude is quietly flowing to Europe as buyers like Italy and Spain snap up barrels. According to data tracked by Bloomberg, Russian crude flows to Italy hit a seven-week high leading up to August 5, and flows spiked to Spain and Turkey as well. Climbing crude volumes to Europe come as the EU's new oil sanctions loom for 2023.
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