This means that there may not be a meaningful pickup in new stocks making their Wall Street debuts anytime soon. Still, experts are hoping that some unicorns could hit the market later in 2022.
“The underperformance of companies that went public in 2021 doesn’t bode well for companies looking to go public now. Companies are waiting to see how things level out,” Gerring said.
Still, the IPO market should open up a bit later this year. Even if the biggest unicorns stay on the sidelines, other private companies may take advantage of the fact that the broader market has rebounded as inflation fears have started to ebb.
Will Braeutigam, capital market transactions leader with Deloitte, said the IPO window could open up in the fourth quarter of this year or early 2023 for more companies to price offerings.
“The market knows more today about inflation and how the Fed is taming it,” said Braeutigam. “The sun is rising. Things are getting better.”
What’s next from the Fed?
The Federal Reserve’s next meeting on interest rates isn’t until September 21, which seems like eons away in this fast-paced/short-term obsessed world.
The annual symposium, held in the Wyoming resort town in late August, is typically newsworthy. A-listers from the investing world and central bankers typically gather to discuss what’s next for the economy. This year should be no exception. Fed chair Jerome Powell is scheduled to give a speech on Friday morning.
Powell isn’t likely to discuss specifics about future rate hikes. He’s more prone to repeat the mantra about how the Fed is “data dependent” and is now going to take things “meeting by meeting” with regards to guidance.
But in light of recent economic data that shows the job market is still strong and that the rate of inflation is starting to cool, some experts wonder if the Fed will be able to slow down the pace of its rate hikes even further. There are worries that if the Fed is too aggressive, that could lead to a recession.
“Powell and other Fed members may be considering if they should stay on their current path,” said Don Calcagni, chief investment officer with Mercer Advisors. “The risks to the downside for the economy are very real.”
With that in mind, Calcagni said he wouldn’t be surprised if the market soon starts to price in the possibility of just quarter-point hikes at the Fed’s next few meetings.
Friday: Fed chair Powell speaks at Jackson Hole; US personal income and spending; University of Michigan consumer sentiment