Options traders are pricing in a 1-in-5 chance that the S&P 500 essentially reverses its decline in 2023.
Pessimism by some measures rivals that seen in the financial crisis and the dot-com crash.
The S&P 500 will be trapped in a band between 3,500 to 4,400 in the next 18 to 36 months, according to Peconic Partners' CIO.
Jim Paulsen began his career in the investment industry in 1983.
For the first time in a long time, bad news for the economy is bad for the stock market, too.
The S&P 500 is at risk of closing below its 100-day moving average for the first time in a more than a month.
The Fed boosting rates to 6.5% next year would lead to just a 10% fall in S&P 500 yields, the firm predicts.
Is there really a "Santa Claus" rally to come?
Events in December from the Fed's policy meeting to data on consumer prices and the labor market can upend any optimism.
U.S. stock options trading volumes are smashing records as investors of all stripes rush into short-dated contracts to catch up.