The majority of Wall Street investors believe stocks have entered a new bull market and the U.S. economy will skirt a recession in 2023, according to the newWe polled about 400 chief investment officers, equity strategists, portfolio managers and CNBC contributors who manage money about where they stood on the markets for the third quarter and forward. The survey was conducted over the last week.
The market has managed to climb a wall of worries so far this year, including rate hikes, debt ceiling debate and a series of bank failures. The S&P 500 is about to end the first half with flying colors, up nearly 15% after four straight winning months in a row. The performance of the tech-heavyis even more impressive — up 30% this year — amid Wall Street's obsession with artificial intelligence.
"There are many reasons to be constructive on U.S. stocks in the second half of 2023, particularly because we have finally started to see more market breadth," said Carol Schleif, chief investment officer at BMO Family Office.The majority of the investors believe the economy will avoid a severe downturn at least for this year despite the Fed's aggressive rate increases.
Many think the unique circumstances this time around — an unprecedented pandemic, which prompted historic fiscal and monetary responses — might result in a downturn unlike any other in the history. "We should not expect a standard recession in this unorthodox cycle," said Jason Draho, head of asset allocation Americas at UBS Global Wealth Management. "The economy may instead experience rolling recessions across different segments."In terms of where investors are putting money to work for the rest of 2023, they believe the best returns can be found in short term Treasurys, the S&P 500 as well as foreign stock markets like Japan, China and Europe.
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Source: CNBC - 🏆 12. / 72 Read more »