Sunday , October 2 2022

Big money investors see the downturn market ends in 2019


Managers also noted that they increased their share to operational strategies and away from the passive approach that has been gaining popularity as much in a low instability environment.

Organizational investors have been preparing for the end of the bull market for several years, said David Goodsell, executive director of the Center for Investor Insight, at an interview.

"The market is still up to what they've been thinking about. I think they've been ready for this for a long time," he said. "Overall they are waiting, except the US equity."

Although a warning raises over the United States, 48 ​​percent of institutional investors say that the emerging market opportunity will become the Asia Pacific region.

The results come in a light atmosphere on Wall Street.

The S & P 500 has risen 305 percent since the bear market in the bottom of March 2009, but has shown continuous signs of fatigue this year. A barrage of geopolitical threats, from North Korea nuclear to controversial discussions of Brexit, domestic political assault, rising interest rates and the U.S.-China trade war have been disturbing the market this year and has left it scarce in the final month of trading.

The Federal Reserve warned, in a paper that was published a week ago, that "very large" slides in stock prices could come to an expiration if some of the risks identified in the survey are relevant.

Bank of America's strategists, Merrill Lynch, said they were entering 2019 bearish on stocks, bonds and US dollars, and products on goods and cash.

"With wildcards everywhere (trade, geopolitics, shortcomings, protection), we have decided to focus on the macro scenarios that seem most likely and most relevant for equity market performance: (1) more subtraction & # 39; ffed, and (2) higher volatility prejudice, "said Savita Subramanian, equity strategist and BofAML sizes, in a research note.

The target company has 2,900 for the S & P 500, which actually represents 7.5 per cent up of the current side. Sub-Submanagement noted that "we believe that the peak in equity is likely before the end of 2019."

Respondents to the Natixis survey say that the greatest negative effects to performance are likely to be geopolitical tensions (77 per cent), trade disputes (74 per cent) and tightening a central bank (65 per cent). The highest portfolio risks are interest rates (56 per cent), volatility spikes (52 per cent) and regulations (32 per cent).

The results also showed that 67 per cent were worried that they were taking too much risk, although 75 per cent said they were willing to underperform their benchmarks to protect against market conflicts.

Organizations see debt as the greatest threat to financial stability, and then geopolitical asset and crisis bubbles.

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