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Laxman Pai, Opalesque Asia: A vast majority (80%) of the investment professionals say that investors have taken on too much portfolio risk in a rate environment that has distorted stock values and decimated bond yields.
According to a new survey by Natixis Investment Manager, increased volatility, correction in stocks, tech and cryptocurrencies predicted; Rates, inflation, and valuations top portfolio risks.
Natixis IM surveyed 141 US investment professionals who collectively represent $2.7 trillion in client assets under management and are responsible for selecting the products and strategies, including mutual funds and exchange-traded funds (ETFs), used to create client portfolios on wealth manager, private bank, family office, wirehouse/broker-dealer, retirement plan provider, insurance and other retail investing platforms.
"Sentiment from fund selectors reflects a shift in the market forces that drove stocks to record highs last year and now call for portfolio repositioning as the Federal Reserve starts raising rates, markets begin to normalize and the world learns to live with COVID," said the survey.
After last year in 2021 when the Standard & Poor's 500 posted gains of 27%, fund selectors correctly forecasted the correction that has been playing out since the beginning of this year in the stock market (64%), tech sector (48%), and cryptocurrencies (71%), said the survey.
Most (88%) anticipate rate hikes, which the Federal Reserve has now indicated w...................... To view our full article Click here
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