The 'zombie economy' is haunting the stock market and stoking uncertainty, strategist says
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The stock market has been jittery due to the presence of 'zombie companies' with unsustainable business models. The chief market strategist at Canaccord Genuity, Tony Dwyer, referred to this as a 'zombie economy' that has contributed to market volatility as interest rates have risen. The high costs of debt have exposed cracks in the commercial real estate sector, leading to a recent decline in New York Bancorp's stock. Despite the uncertainty, the US economy has shown strong GDP growth and jobs data. Dwyer suggests that lower interest rates would be a solution to the zombie economy. However, a rate cut in March is unlikely, but there is a 55% chance of a rate cut in May according to the CME FedWatch Tool.

#ZombieEconomy #StockMarket #Uncertainty #InterestRates #CommercialRealEstate #Debt

https://www.businessinsider.com/recession-outlook-stock-market-debt-real-estate-fed-rates-zombie-2024-2