Wall Street experts warn stocks have ‘ample space’ to continue cratering as Trump team digs in on tariffs
The S&P 500 (^GSPC) just had its worst week since March 2020, and Wall Street isn’t confident the selling is over.
Citi head of US equity strategy Stuart Kaiser wrote in a note to clients on Sunday he sees “ample space to the downside” for stocks.
Kaiser said worst case scenario tariff outcomes still haven’t been priced into earnings estimates — or stock valuations. Similarly, should the economy truly be set to slow to the recessionary levels some fear, the stock market hasn’t properly priced in that outcome yet either, Kaiser said.
“We remain very cautious,” Kaiser wrote in a note to clients on Sunday. “Progress on valuation, positioning and risk pricing is not enough as EPS and growth forecasts are well-above the potential…
