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- Market correction in two months, says fund managers from Wall Street
Market correction in two months, says fund managers from Wall Street
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Loading...Many investment managers and analysts have been talking about a market correction after the strong stock performances in Europe and the U.S. since the start of the year. The S&P 500 is up about 10 percent since January this and Europe's Stoxx 600 is up by about 3 percent year-to-date.
"We believe there is a certain probability for a market correction over the coming two months, however, there is no inevitability for this to happen. What would be required is a trigger," says Lothar Mentel, chief executive officer and chief investment officer at Tatton Investment Management.
David Marsh, managing director of OMFIF, an independent think tank, told earlier this week: "We are approaching a peak, if we haven't reached it already, and I think we are due a correction anyway and we're going to be seeing some good reasons for that."
The total return of the S&P 500 index hit its annualized average (over the past 90 years) in just under half a year in 2017 - meaning that investors have made in half of the year what they used to do over an entire year for the past 90 years. Investors have also run to European equities throughout the year on positive economic data and strong earnings. However, the party could come to a close soon, if the right trigger takes place.
"In our opinion, the highest risk/probability for such a trigger event is still a slowdown in China – not (yet) North Korea or Trump," Mentel from Tatton Investment Management said.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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