Macro enviornment effects on equities - Flat to Bearish The current macro-geopolitical environment presents several quantifiable bearish pressures on the Nasdaq. Housing markets are showing real signs of deterioration, with home listings in Florida and other regions down 15–20% from peak prices, and many individual properties seeing $100K+ price cuts—foreshadowing a broader 24–30% drawdown in real estate that could significantly erode consumer wealth and confidence. Labor market weakness is emerging beneath the surface, with rising layoffs in tech and new graduates facing difficulty securing jobs, even as the Fed is projected to cut rates twice by year-end. While disinflation supports policy easing, it is being outweighed by the drag from labor and housing stress. Geopolitically, the escalation risk in the Iran–Israel conflict introduces volatility and commodity price spikes, while the Ukraine war, though stagnating, remains unresolved. U.S. foreign policy appears increasingly erratic, adding further uncertainty premium. These elements combine to create a risk environment where upside in the Nasdaq is capped, and downside exposure remains
Flat to Bearish for the next 12 months, drawdown up to 25% to December 2021 high on NDX and support line during recent tariff crashes. long sustained drawdown would sustain for a while if we get into situations like housing collapse, or entering into a war, even indirectly like we did for Ukraine.
significant. NASDAQ:NDX NASDAQ:NDX NASDAQ:QQQ AMEX:SPY
