Investors are increasingly holding their positions in the market despite volatility, and that points to optimism for the broader economic outlook, according to Vanguard's global head of investor research and policy, Fiona Greig.
"Yes, there's been volatility, but the longer-term outlook [investors] have for the stock market is stable," Greig said."So unless they have a particular need to liquidate or pull out, investors are really staying the course, and I think that's good news."from Vanguard detailing investor behavior trends, data shows that investors in December expected stock returns in the next 12 months of 2.7%, up from a five-year low of 0.
"One way to read this is that rate hikes are priced in," Greig said."Look at December's rate hike, it was a non-event in markets. That suggests to me that markets are expecting a moderation strategy for the Fed. There's some lower expectations for stock market returns in the short term, but we see pretty clear expectations and optimism for returns in the next 12 months, and even 10 years.
I don't feel optimism is quite the right word just yet. We still have major inflation happening and a long road with the 10 year Treasury yield. Plus our housing market is stalled out
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