ociete Generale SA’s strategist who predicted this year’s European stock market slide says traders should prepare for a rough 2019.
“It’ll be another tough year for stock investors,” Roland Kaloyan, the head of European equity strategy at SocGen, who in January was the only analyst surveyed by Bloomberg to forecast a drop in the Stoxx Europe 600 this year, said by phone. “You have less growth and tighter monetary policy, which isn’t a good mix for European stocks.”
As if this year’s European equity collapse -- which wiped out as much as $2.5 trillion in market value -- wasn’t bad enough, Kaloyan expects the Stoxx 600 to lose about 16 percent next year and finish 2019 at 300 points, a level not seen since mid-2013. The strategist sees slower economic growth coupled with an interest rate increase by the European Central Bank in September as the main factors hurting stocks.
Source: Bloomberg Finance L.P.
Chart: Used with permission from Bloomberg Finance L.P.
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