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

  • 📰 CNBC
  • ⏱ Reading Time:
  • 23 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 72%

United Kingdom News News

United Kingdom United Kingdom Latest News,United Kingdom United Kingdom Headlines

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.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in UK
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

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 .

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market news today: S&P 500 aims for 3rd straight winUS stocks edge higher as Treasury yields slip and investors await Powell testimony
Source: BusinessInsider - 🏆 729. / 51 Read more »

This fund is trouncing the S&P 500 by focusing on international stocksThe Third Avenue Value Fund has outperformed the S&P 500 in 2022 and the early months of 2023.
Source: CNBC - 🏆 12. / 72 Read more »

U.S. stocks open higher as S&P 500 attempts to extend Friday’s gainsU.S. stocks opened higher Monday, with the S&P 500 up slightly, as major indexes attempt to extend sharp gains booked Friday. The Dow Jones Industrial...
Source: MarketWatch - 🏆 3. / 97 Read more »