Saxo Bank expects crude oil to hit $150 per barrel in 2024 while the Japanese economy to grow by a staggering 7%.
As the year draws to a close, Wall Street banks are unveiling their forecasts for 2024, and Denmark’s Saxo Bank has once again embraced its annual tradition of presenting outrageous predictions. Termed as “unlikely but underappreciated events,” these forecasts could potentially shake the global economy and elevate volatility in financial markets.
Topping the list of Saxo Bank’s eccentric predictions for 2024 is the victory of Robert F. Kennedy Jr. in the presidential election. Despite previous criticism for anti-vaxx and anti-Semitic comments, RFK Jr. enjoys a plus-7.5 favorability rating among Americans, as per polling data from FiveThirtyEight. Saxo Bank suggests that a combination of a predicted recession and voter fatigue over choosing between Joe Biden and Donald Trump could pave the way for his success in November.
In the scenario of an RFK Jr. victory, Saxo’s head of FX strategy, John Hardy, anticipates a downturn in stock prices for defense, drug, and healthcare companies. Concurrently, major players in Big Tech, which have witnessed substantial returns this year, would likely trade more cautiously due to concerns about potential crackdowns on monopolies.
Furthermore, Saxo Bank envisions a high-profile government official falling victim to AI deepfake technology, subsequently triggering a national security crisis. This would intensify scrutiny on developers of intelligent language bots like Google and OpenAI, while traditional media companies such as the New York Times could experience a substantial surge in share prices, according to Saxo’s head of equity strategy, Peter Garnry.
Six More Outrageous Predictions from Saxo Bank
The Wall Street banking giant has released six more outrageous predictions for 2024, including skyrocketing crude oil prices, and rapid growth in the Japanese economy. These predictions include:
- Crude Oil Hits $150: Saxo envisions a surge in crude oil prices, reaching $150 per barrel. This spike grants Saudi Arabia the financial muscle to establish a World Champions League soccer competition.
- McDonald’s and Coca-Cola Soar Amidst Obesity Concerns: Saxo Bank expects the shares of fast-food giants McDonald’s and beverage behemoth Coca-Cola to skyrocket. The rise is due to the popularity of obesity drugs like Ozempic, fueling unhealthy habits and triggering a worldwide health crisis.
- US Treasury Bonds Go Tax-Free: Saxo proposes an unconventional approach for the US to manage its towering debt by making Treasurys tax-free. This move is likely to ignite a substantial rally in the bond market.
- Formation of the “Rome Club”: Six heavily indebted nations – the US, the UK, India, Brazil, Canada, and France – allegedly form the “Rome club” to coordinate efforts to reduce their deficits.
- Japan’s Economic Boom: Saxo predicts an economic boom for Japan, with GDP growth exceeding 7%. This surge is anticipated to strengthen the yen against the US dollar.
- Luxury Stocks Crash Due to EU Wealth Tax: In response to the European Union’s introduction of a “Robin Hood”-style wealth tax, luxury stocks, including those of LVMH, the parent company of Louis Vuitton, are expected to plummet.
In its official press release on Tuesday, Saxo Bank noted:
“Though these predictions are not Saxo Bank’s official market forecasts, they are a reminder to investors to consider all potential outcomes, including those that seem far-fetched. Outrageous predictions are a deliberate effort to push the boundaries of market participants’ imaginations and prepare them for any eventuality”.
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