U.S. equities are bouncing back after last week's sell-off, according to Nomura. Macro hedge funds buying into the pullback has helped power the recent rebound; without them, the market would likely have remained soft throughout, said analyst Yoshitaka Suda. 'We think the downside risk posed to U.S. equities by systematic investors is much less serious now than it was before,' Suda wrote in a Tuesday note.
To be sure, Suda believes volatility levels will stay elevated due to an uncertain outlook on the U.S. economy until the presidential election in November. 'The event premiums the market assigns to economic indicators also look likely to rise, given the increased uncertainty over the outlook for the US economy,' Suda said.
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Source: CNBC - 🏆 12. / 72 Read more »