Wall Street isn’t pricing in recession risk

Quick Summary:

The fall typically lowers prices from 16 to 11 times expected earnings, with the shallowest recession taking them to 14 times.

Wells Fargo boss Charles Scharf said on a call last week that the bank was monitoring credit drawdowns “really, really closely”.

Lop that off expectations, and put the index on 11 times earnings, and that implies a more than 40 per cent fall to come.

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Article Details

Category: MarketsFinanceInvesting

Markets: United States

Topics: Forecasts Data Recession Last Cent Economic Must Earnings 2025 Investors Financial

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-04-15 @ 14:46:17 (16 hours ago)

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Article Length: 552 words

Reading Time: 4 minutes read

Sentences: 33 lines

Sentence Length: 17 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Financial Times

News ID: 27923451

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Main Topics: MarketsFinanceInvesting

Official Website: ft.com

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Year Established: 1888

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News Last Updated: 9 hours ago

Coverage Areas: United States

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