(click here Subscribe to the new Delivering Alpha newsletter. )
Wall Street investors believe it’s time to remove the risk from the table as concerns continue to pile up this month. CNBC providing alpha Research.
We surveyed approximately 400 chief investment officers, equity strategists, portfolio managers, and CNBC contributors who manage funds for the rest of 2021 and their position in the market next year. The survey was conducted this week.
When more than three-quarters of respondents were asked what market risk they were willing to accept for themselves and their clients, it was a very conservative time in the stock market. I said there is.
Uncertainty confluences can emerge on the market and upset the record recovery rally for equities.On Monday, the S & P 500 Worst sold out since May As investors become more concerned about the potential rollback of China’s nasty real estate sector and the Fed’s massive stimulus package. Meanwhile, concerns about slowing economic growth amid high inflation, the so-called stagflation, have returned nearly two years before the pandemic began.
While currently taking a more cautious view of the market, investors believe that stock prices could rise further in the next 12 months.About half of the survey respondents S & P 500 It will increase by more than 5% in the next 12 months. 44% said stock benchmarks were fairly flat, but only 5% said they would fall next year.
After this week’s pullback, the S & P 500 has been off record highs of about 4.2% since early September. Benchmarks have risen about 16% this year after increasing for eight consecutive months. Many believe that the market is experiencing seasonal weaknesses in the historically volatile September month.
Bryan Price, Head of Investment Management at the Commonwealth Financial Network, said: “Market participants seem to be trying to weaken this year’s backlash after a relatively quiet summer, when the roads with the least resistance to stocks have steadily risen,” he said.
Some prominent strategists are sticking to the bullish call in the market. Fundstrat’s Tom Lee believes it’s widely followed The stock market rout on Monday is a buying opportunity for investors. Marko Kolanovic, JPMorgan’s Quants Leader, Sold out too much.
But Mike Wilson of Morgan Stanley, one of Wall Street’s biggest bears, sees a “destructive” scenario that the S & P 500 suffers. 20% correction Because some economic indicators have begun to deteriorate.
According to the survey results, for investors focusing on yield, the best strategy at the moment is private credit. Only 2% of respondents believe that the Treasury can provide attractive income.
Government bonds are getting faster One of the most hated asset classes As their safe haven became less attractive during the economic recovery. Meanwhile, the Fed, which has purchased $ 120 billion in government bonds and mortgage-backed securities through a quantitative easing program, could soon embark on a taper process.
Former bond king Bill Gross Recently called the Treasury Garbage, Say 10 year yield Approximately 2% will be traded over the next 12 months.Leon Cooperman said last week Bonds are “totally overpriced“, Calling for a significant drop in prices.
Did you enjoy this article?
Exclusive Stock Selection, Investment Ideas, CNBC Global Live Stream
Apply CNBC Pro
Let’s get started with you Free trial now
According to a CNBC study, investors think it’s time to be very conservative in the stock market.
Source link According to a CNBC study, investors think it’s time to be very conservative in the stock market.