A correction in the market of actions 5% to 10% by the end of the year was the majority forecast in a September market sentiment survey published by Deutsche Bank this Monday, in the latest sign of market caution about the end of the stock rally.
According to the survey, carried out between the 7th and 9th of September of more than 550 professionals in the global market, 58% of respondents said they expected a sell-off by the end of the year.
With the help of a large amount of stimulus from central banks, shares soared from lows reached in March 2020, when the pandemic of Covid-19 it scared the markets and triggered a sharp drop in stocks. MSCI’s world stock index has nearly doubled since then.
Economic growth and corporate balance sheets rebounded faster than expected, but now data from U.S and of the China suggest that the recovery may be running out of steam.
Covid-19 was still considered the biggest risk to market stability, with 53% of Deutsche Bank survey respondents citing concerns about new resistant variants. vaccines. This fear was followed by fear of inflation above expectations.
The September poll also showed that belief in transient inflation — guaranteed by central banks — is waning, though it still remains the majority view.
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