Stocks positioning 'not stretched', leaves room for more gains: Barclays

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Stocks positioning 'not stretched', leaves room for more gains: Barclays

Investing.com -- Barclays analysts suggested in a note Wednesday that while equities are at record highs, overall market positioning is"not stretched," leaving room for further gains as systematic investors could chase the rally if volatility remains subdued.

"Sep/Oct seasonality, buybacks blackout ahead of Q3 earnings and US elections uncertainty are near-term headwinds," acknowledged Barclays. The note also highlighted sectoral and geographic shifts. While U.S. stocks continue to lead global equity inflows, demand for emerging markets has picked up, driven by a weaker dollar.

The bank sees the current market setup as a"pain trade" for those underexposed to cyclicals, particularly in China-exposed sectors.

 

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