Regular investors are set to dump stocks in a big way, Goldman says. Where they're going instead

  • 📰 CNBC
  • ⏱ Reading Time:
  • 22 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 72%

United States News News

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

The Wall Street firm is predicting U.S. households will be net sellers of $750 billion in equities this year.

U.S. households will be net sellers of $750 billion in equities this year, according to a Goldman Sachs forecast. Instead, those investors will put money into credit and money market assets, analyst Cormac Conner said in a note Wednesday. High-frequency data show that $51 billion has flowed out of U.S. equity mutual funds and ETFs so far this year, while $282 billion has flowed into money market funds and $137 billion has flowed into U.S. bond funds, he pointed out.

It's downside case shows household selling could total $1.1 trillion. Stocks have struggled this year as i nterest rates surged along with Federal Reserve interest rate hikes , sending some income-seeking investors into Treasurys. Yields move inversely to prices. Recently the bank crisis caused investors to flee into the safety of bonds, causing yields to drop from highs a bit. The 10-year is now yielding about 3.48%.

 

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

Perfect buying opportunities ahead. 🙄 GoldmanSachs

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 US

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