3 reasons the S&P 500 could be fall by 48%

The S&P 500 could be headed for a drop of up to 48%, according to James McDonald, the CEO and chief investment officer of Hercules Investments

1. A new strain of COVID-19 in the UK ( The perceived future harm of the new COVID-19 strain in the UK will introduce additional risk to markets )

2. Historically elevated tech valuations ( the technology sector exceeded levels in the days and weeks before the major market crashes of 1929, 1987, 2001, and 2008 )

3. The stimulus package isn't enough to offset the economic fallout of COVID-19 ( The $900 billion stimulus package is necessary and was largely expected by investors - but it won't be enough to limit the economic fallout of the pandemic)

The current level of S&P 500 is 3,694.92

source: businessinsider