Citigroup clients believe that US stocks are more likely to fall by 20% than rise by 20%.
Us debt may continue to fall, putting pressure on the 60-pound 40-share bond allocation strategy
Citi's survey of institutional clients shows that most investors are interested in continuous Qualcomm IncInflation is worried that US stocks are more likely to fall 20 per cent than rise 20 per cent.
Although most people expect the S & P 500 to rise moderately next year, price pressures and the Fed's policy reversal pose major risks to the index, according to a survey of more than 90 pension funds, mutual funds and hedge funds this month.
Nearly 60 per cent of respondents were preparing for "persistent" inflation, while only 23 per cent thought inflation was "temporary". Most institutions expect the Fed to raise interest rates in the second half of 2022 or the first half of 2023.
This is a concern for investors looking to profit from high school in the stock index, and even more bad news for bondholders. As US stocks fell and US bond yields soared, institutions that stuck to the traditional 60-to-40-share allocation strategy have suffered their biggest losses in nearly a year this month.
Citigroup Inc clients expect the yield on 10-year Treasuries to break through 2 per cent in 2022, rising 20 basis points to about 1.5 per cent this month.
They have an average target of 4630 for the S & P 500 in December 2022 and 4487 by the end of the year.
According to the September 14-22 survey, the median proportion of cash assets of these institutional clients is 5%, which is in line with the long-term average.