U.S. stocks are on a 'suckers' rally' and a big pullback is possible, chief investment officer says

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The U.K.-based CIO said he expects a pullback in U.S. equities after the S&P 500 rose by 14% since the start of October.

The recent rise in stocks is a "sucker's rally," according to chief investment officer Peter Toogood. The CIO of U.K.-based financial services company Embark Group said he now expects a pullback in U.S. equities, after the S & P 500 rose by 14% since the start of October. Toogood said he is concerned over valuations since U.S. equities tend to trade at a P/E multiple of 20x, but yield on average 5% annually.

1 — higher than yields on bonds with a maturity greater than 5 years . However, the premium for carrying the risk of investing in stocks has not risen in tandem, according to Toogood. This means that stocks will have to either become cheaper to compensate for the increased risk, or risk premiums will have to decline to maintain current share prices. Bond prices — and their yields — also partly reflect future expectations on the rate of inflation.

 

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I love how these market experts say things with such conviction. A big pullback is “possible”. Lots of outcomes are possible.

This chief investment officer got caught short 100% he is trying to manipulate the market down , better for him to close his short and he should no go against the trend , the trend is your friend . Stop manipulate the market , no credibility .

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