World stocks' dance to continue, but inflation could mute the music: Reuters poll

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The bull-run in global stocks fueled by cheap cash and reflation hopes will continue for at least another six months but a rise in bond yields as inflation expectations grow could throw a spanner in the works, Reuters polls found

FILE PHOTO: Dividers are seen inside a trading post on the trading floor as preparations are made for the return to trading at the New York Stock Exchange in New York, U.S., May 22, 2020. REUTERS/Brendan McDermid/File Photo

But even as a gauge of equities slipped this week on hints of rising inflation led by higher oil prices and the strongest copper price in nearly a decade, the Feb. 12-24 polls of nearly 300 equity strategists found the trend of stock market gains was set to continue this year. In response to an additional question, over two-thirds, or 79 of 111 analysts, said the run-up in global stocks would continue for at least another six months, including 58 who said over a year.

With over 65%, or 72 of 110 strategists who responded to a separate question, expecting corporate earnings to return to pre-COVID-19 levels within a year, stock markets from developed to emerging were forecast to rally through 2021. [EPOLL/JP][EPOLL/IN][EPOLL/RU][EPOLL/EU][EPOLL/BR][EPOLL/US][EPOLL/CA]

But concerns were growing for a significant market correction as surging U.S. Treasury yields on rising inflation prospects have triggered caution over pricey equity valuations. When asked about the likelihood of a significant correction -- commonly defined as a fall of 10% or more -- in stock markets in the next six months, 87 of 115 respondents said it was “likely”, including 27 who said “very likely”.

 

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As long as you rotate from low yield to high yield stuff you should have no problem. The problem is with intermediaries those that manage your loot. Most of them looters themselves. I don't use any of the looters. I do it myself. Of course I know what I am doing! Good luck!

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