This means that new stocks making their debut in Wall Street may not see a meaningful pickup anytime soon. Still, experts are hoping that some unicorns may hit the market later in 2022.
“The poor performance of companies going public in 2021 doesn’t bode well for companies going public now. Companies are waiting to see how things go,” Gering said.
Still, the IPO market should open up a bit later this year. Even if the biggest unicorns remain on edge, other private companies can take advantage of the fact that the broader market has returned as inflation fears begin to ease.
Will Breutigam, capital markets transactions leader at Deloitte, said the IPO window could open in the fourth quarter of this year or as early as 2023 for more companies to open to the offering price.
“The market today knows more about inflation and how the Fed is controlling it,” Breutigam said. “The sun is rising. Things are getting better.”
What’s next from the Fed?
The next Federal Reserve meeting on interest rates isn’t until September 21, which seems like aeons in this fast-paced/short-term obsessive world.
The annual symposium, held in a Wyoming resort town in late August, is generally new. A-listers and central bankers from the investing world generally gather to discuss what’s next for the economy. This year should be no exception. Fed Chairman Jerome Powell is due to deliver a speech on Friday morning.
Powell is unlikely to hold specific discussions about future rate hikes. He is more prone to repeat the mantra of how the Fed is “dependent on data” and is now going to “meet by meeting” regarding guidance.
But with recent economic data showing that the job market is still strong and inflation is beginning to cool, some experts wonder whether the Fed will be able to slow its rate hikes even further. There are concerns that if the Fed is too aggressive, it could lead to a recession.
“Powell and other Fed members can consider whether they should continue on their current path,” said Don Calcagni, chief investment officer at Mercer Advisors. “The downside risks to the economy are very real.”
With that in mind, Calcagni said he wouldn’t be surprised if the market starts to price sooner in the prospect of only quarter-point increases in the Fed’s next few meetings.
Friday: Fed Chair Powell speaks at Jackson Hole; US personal income and expenses; University of Michigan Consumer Sentiment