Recession is coming and it could send stocks plummeting 26% as dwindling savings rates spark a ‘vicious cycle’ in the economy, strategist says.

BCA strategist Roukaya Ibrahim believes a recession
is looming, despite current optimism on Wall Street. In a recent
interview with Fox Business Network, she predicted the economy
will dip before early 2025, potentially causing the S&P 500 to
plummet to 3,500, a 26% drop from current levels. This outlook is based
on the Federal Reserve’s aggressive monetary tightening since March
2022, leading to the highest interest rates since 2001.
Signs of economic strain are already apparent, such
as rising auto loan delinquencies and a near-record low savings rate.
Ibrahim warns that once the economy enters a recession,
stocks will be vulnerable, especially as investors remain bullish.
Other market experts echo her concerns, with some models indicating an
85% chance of recession, the highest since the 2008 financial crisis.