The Stock Market Could Plunge 29% This Year, According to DataTrek Research Co-founder Nicholas Colas

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A plunge to that level would represent a peak-to-trough slump of 45%.

“The bottom line here is that multiple compression occurs when, at the margin, investors lose faith in either corporate earnings power or the predictability of Fed monetary policy. For all of this year’s disappointing equity market returns, neither is currently an outsized factor in setting daily stock prices,” Colas said.