Economic and stock market forecast for Apr-Jun2023 under increasing geopolitical tensions

I had predicted that globally stock markets would go up in April before crashing in May. So Indian stock market is about 5% up and USA and other markets are also about 3-4% up in this month. Corporate results season has started and till now few IT and banks quarterly results have come out in India and USA and they are not good. Major quarterly results would be declared by Mid May and that will clear the corporate earnings and economic picture for the rest of 2023.

Geopolitical tensions and global political scenario is rapidly changing as new war front has opened up in Sudan, Africa besides Russia Ukraine war. Not many people may be knowing but in Sudan also its proxy war between Russia and USA as Africa is tilting towards Russia and USA is trying to reestablish its influence over it. Sudanese government and Army have signed an agreement for military cooperation with Russia and USA is fiercely opposing it and so USA started this conflict by propping up Sudanese paramilitary against its army. Israel and Iran tensions are increasing in the west Asia and China Taiwan issue is continuing to boil. The increasing war and conflicts all over the world are not good for economy and inflation as world economy may suffer terribly and world may be pushed into stagflation (high inflation and no growth) for a long time.
I believe that as quarterly results of major companies would show declining profit trend. This would then lead to increasing earnings downgrade by analysts for the year 2023 and 2024 as well. Valuation multiple PE for companies and index had expanded in 2020-2022 post Covid due to loose monetary policy and high earnings growth. But with declining profits and uncertain global economic growth outlook, we expect the compression of PE valuation multiples also keeping markets under pressure.