(Reuters) – A 5% to 10% stock market correction by year-end was the majority forecast in a September market sentiment survey published by Deutsche Bank on Monday (13), in the latest sign of caution. the market on 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 covid-19 pandemic startled 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 the United States and China suggest the recovery may be running out of steam.
Covid-19 was still considered the biggest risk to market stability, with 53 percent of Deutsche Bank survey respondents citing concerns about new vaccine-resistant strains. This fear was followed by fears of higher-than-expected inflation.
The September poll also showed that belief in transitory inflation – ensured by central banks – is waning, although it still remains the majority view.