Expect stocks to plunge at least 10% once investors price in the risk of recession, one strategist says

• Stocks could plunge 10% or more once markets price in the risk of recession, one strategist says.
• The Fed will likely tank the economy if it pursues 2% inflation, Key Advisors' Eddie Ghabour says.
• Ghabour sees signs of resurgent price growth and weakness among American consumers.

Stocks may plunge by 10% or more if the Federal Reserve forges ahead with its inflation fight and throttles the economy, one strategist has warned.

"You normally will see a double-digit drop ... when the market finally prices in the recession," Eddie Ghabour, CEO of Key Advisors Wealth Management, told Yahoo Finance on Tuesday. A 10% decline would erase a big chunk of the S&P 500's 17% advance this year.