10 Places Wall Street Experts Say to Invest Amid High Risk For Stocks

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 47 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 51%

United States News News

Top Wall Street strategists and money managers are warning that the risk-reward ratio for stocks is at its worst since the 2008 crisis. Here are 10 places they say to put your money instead with further downside expected for the S&P 500.

Morgan Stanley, UBS, Societe Generale, and others are warning of weak returns for the S&P 500.One way to judge how overvalued or undervalued stocks are is to compare their projected future returns to yields offered by risk-free bonds.

Even if stock valuations are lower in an absolute sense, risk-free Treasurys may make more sense as an investment if their yields are comparable to the S&P 500's expected returns. In other words, the risk-reward ratio for stocks — or theOver the last couple of weeks, strategists and money managers on Wall Street have been warning that investing in the broader market is not a risk worth taking right now.

"Even though stocks began the week roughly 15% below the all-time highs reached in early 2022, the S&P 500 isn't cheap when running cross-asset analysis," said Tom Essaye, the founder of Sevens Report, a research firm which counts some of Wall Street's biggest banks as clients."In fact, the broad-based index is currently as expensive as it has been in 16 years relative to bond markets.", the S&P 500's equity risk premium has been on average between 3-3.

 

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

 /  🏆 729. in US

United States United States Latest News, United States United States Headlines