Bleak view for market after scaling Peak 20K

The findings on inflation are discouraging, too. According to the survey report, inflation expectations have jumped to the highest since May 2022.

- Harsha Jethmalani

With that, sticky inflation and hawkish central banks are still seen as risks to portfolios. This is followed by worsening geopolitical tension.

The US Fed is likely to hike interest rates one more time by 25 basis points by the end of 2023. “After which we expect policy rates to remain stable but elevated, likely through the end of next year," said Saira Malik, chief investment officer, Nuveen, in an 11 September report. She foresees a soft landing or mild recession sometime in 2024. “The plot could thicken if climbing oil prices continue, driving a rebound in overall inflation and prompting a vigilant Fed to hike more than once in the near to medium term," she added.