Only 1% of participants see a resurgence in the Covid-19 pandemic as a tail risk. ![]() Persistently high inflation is seen as the biggest tail risk, followed by hawkish central banks, geopolitics and a global recession. A net 92% of participants in the Bank of America survey now expect profits to decline in the next year, while the number of investors taking higher-than-normal risk has fallen to a record low. The outlook for corporate earnings is also deteriorating. But he expects the index to fall back from that level, and remains “fundamentally and patiently bearish.” ![]() say bleak investor sentiment - often a contrarian indicator for a stock rally - is likely to drive equities higher into the year-end.īank of America’s Hartnett sees the extent of depressed sentiment and better-than-feared macroeconomic data boosting the S&P 500 to 4,300 points - nearly 5% above current levels. Strategists at top banks including Deutsche Bank AG and JPMorgan Chase & Co. Declines have been driven by fears that central banks will remain hawkish for longer and tip the economy into a recession, while rallies have been fueled by low investor positioning and optimism around peaking US inflation. Global stocks have had a roller-coaster ride in the past few months. Read more: US Inflation Tops Forecasts, Cementing Odds of Big Fed Hike US stock futures fell on the news with contracts on the S&P 500 dropping by more than 2%. Therefore, Blue Origin is owned by Jeff Bezos. He has pledged to sell 1 billion of Amazon stock per year and plans to continue to do that for a long time. The survey showed the market’s grim mood even before Tuesday’s report on US inflation, which ran hotter than estimates in August and cemented traders’ bets on a 75 basis-point rate hike by the Federal Reserve next week. Bezos has sold Amazon stock over the years to fund Blue Origin privately. A net 42% of global investors are underweight European equities, the largest such position on record. Sentiment is “super bearish,” with the energy crisis further weighing on risk appetite, they said. 8.Īs concerns over the economy escalate, the number of investors expecting a recession has reached the highest since May 2020, strategists led by Michael Hartnett wrote in a note on Tuesday. Hedge Fund’s Decade-Long Wait for Yuan Crash Nears PaydayĪ historically high 52% of respondents said they are underweight equities, while 62% are overweight cash, according to the bank’s global fund manager survey, which included 212 participants with $616 billion under management in the week through Sept. ![]() Ukrainian Successes Raise Russian Collapse to Realm of Possibility Ugly Selloff Pushes Stocks Down Most Since 2020: Markets Wrap The World’s Hottest Housing Markets Are Facing a Painful Reset US Inflation Tops Forecasts, Cementing Odds of Big Fed Hike (Bloomberg) - Investors are fleeing equities en masse amid the specter of a recession, with allocations to stocks at record lows and cash exposure at all-time highs, a Bank of America Corp.
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