Global Economic Turmoil: Peter Berezin Warns of US Recession and 30% Drop in S&P 500 Amid Pandemic Aftershocks

The ongoing economic downturn caused by the Covid-19 pandemic has exacerbated the scars left by the Great Recession of 2008-2009, leading to concerns about the stability of global financial markets. A recent report from BCA Research, a Canadian investment research organization, predicts increased volatility in the US stock market in the near future.

According to Fox Business, chief global strategist Peter Berezin has warned clients that the US economy may fall into a recession either this year or in early 2025, potentially leading to a 30% drop in the S&P 500. Berezin’s prediction is based on his expectation of a notable slowdown in the labor market, which could impact consumer spending and ultimately drive economic growth.

Berezin suggests that the relationship between inflation and unemployment, as measured by the Phillips curve, could lead to economic challenges not only in the US but also globally. This includes slow growth in China and Europe, which could put pressure on international stock markets.

Despite reaching a new record high in mid-May, the Dow Jones Industrial Average has since dropped from those peaks. If Berezin’s forecast comes to fruition, it could have significant implications for investors and