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06 August 2021
04:33 hour

Market Extra: U.S. investors expect inflation to pick up, prompting these portfolio changes, a UBS survey finds

Market Watch

21/07/2021 - 22:16

A majority of investors in the U.S. are expecting inflation to pick up, with many planning to buy stocks to adjust for the rise, according to UBS Group’s quarterly investor sentiment survey.


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  1. The Tell: U.S. stocks are no longer top pick as investors ‘take a step back,’ Citigroup survey finds (28/06/2021 - Market Watch)
    With the stock market near record highs, the threat of a pullback is outweighing investor optimism for a big rally from current levels, according to a Citigroup survey of its clients.
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  3. U.S. stocks are no longer top pick as investors ‘take a step back,’ Citigroup survey finds (28/06/2021 - Reddit Stock Market)
    U.S. stocks are no longer top pick as investors ‘take a step back,’ Citigroup survey finds (msn.com) Christine Idzelis 36 mins ago THE TELL With the stock market near record highs, the threat of a pullback is outweighing investor optimism for a big rally from current levels, according to a Citigroup survey of its clients. “In some ways, clients seemed willing to take a step back,” a Citi analyst said in a research report published just before the weekend. They upped their median cash holdings “modestly” and signaled that a 20% correction remained more likely than a rally of the same size in stocks. Investors worry most about Federal Reserve policy and inflation, said the Citi report, which collected insights over the past two weeks from pension funds, mutual funds and hedge funds. More than half of respondents indicated that inflation will be “sticky,” or persisting 9 to 12 months, with the largest block of those surveyed expecting the Fed to raise short-term rates in the second half of 2021. The S&P 500 index has kept climbing past all-time highs this year, even after the Fed meeting earlier this month initially rattled markets with a more hawkish leaning than expected. The S&P 500 was flat in midday trading Monday, at about 4,280, after finishing at another record high Friday. With the U.S. stock market hovering around peaks, Citi’s survey found its clients preferring opportunities on the other side of the Atlantic. “Europe has become the most favored equity market,” the report said. “European equities surged to first place in areas to invest,” overtaking U.S. stocks, which had been the most popular asset class in Citi’s March survey. Commodities now rank second for asset classes expected to outperform global equities, followed by U.S. stocks as a close third, the report shows. Almost half of Citi’s clients expect that S&P 500 will end this year between 4200 and 4400, with a weighted average target of 4,269, the survey found. “The buy-side chose energy to be the best performer, wrestling the lead from financials, while tech is anticipated to underperform and utilities remain the most unloved,” the analyst said. “We cannot necessarily explain why investors seem so unenthused on utilities and consumer staples,” the Citi report said. “But they have been the worst performers of the S&P 500 sectors year to date and thus there could be some trend-following being reflected.”   submitted by   /u/SavannahSmiles_ [link]   [comments]
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  4. Market Extra: Is this ‘good’ inflation or ‘bad’ inflation? Stock-market investors are rattled because they can’t tell (14/05/2021 - Market Watch)
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  11. : Americans are bracing for higher inflation — but expect some relief on food and gas prices (12/07/2021 - Market Watch)
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  12. Market Extra: Stock markets outside the U.S. could beat inflation even at 1970s levels, says Citigroup (07/06/2021 - Market Watch)
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  17. “Goldilocks” inflation (27/05/2021 - Reddit Stocks)
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  30. A BoA survey shows that inflation is one of the top worries for investors, I build a tool to track fear of the inflation narrative (22/05/2021 - Reddit Stock Market)
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  34. : U.S. economy accelerates in the spring, Fed’s beige book finds (14/04/2021 - Market Watch)
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  41. What stocks to invest during periods of high inflation? (06/03/2021 - Reddit Stocks)
    Hi y'all,what kind of stocks to pick during periods of possible high inflation? Other than real estate and commodities which is widely regarded as a better investment,I wonder if is it possible to hedge my investments in stocks instead.I summarize my questions in the following: 1.Does inflation damages the value of too big to fail stocks? 2.What happens if a hyperinflation occurs suddenly? 3.What sector/stock to pick if so?   submitted by   /u/fernandeztahi [link]   [comments]
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  47. Investors: Make sure you all understand and know how to calculate your “Break-Even Rate”. (23/03/2021 - Reddit Stocks)
    Inflation and taxes can easily erode your profits/gains over time. Especially when you enter and exit trades consistently over the long-term or if your investments are placed in a non-tax sheltered account. Your break-even rate is the rate of return you need to make just to keep up your purchasing power level, not including brokerage fees. To calculate, first estimate the rate of inflation you expect to experience over the next year, you can refer to the Bureau of Labour statistics (BLS) which also publishes the Consumer price index (CPI) which is a measure of inflation. To calculate your break-even rate you can use the formula: (i) / (100 - E) = B B: Break-even rate I: Inflation E: Effective tax-rate Ex. If you assume a (2%) inflation over the coming year and your combined tax rate is 44% then your break even rate is: 2% / (100 - 44) = (3.6%). 3.6% net on your portfolio to maintain your purchasing power. Earning this rate does not provide any real profits, it only maintains the value of your investments. If you are earning less than your break-even rate after taxes and inflation have been taken into account, you are actually losing money on your total investments and may have to accept high risk just to maintain your purchasing power.   submitted by   /u/Mynameistowelie [link]   [comments]
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  48. A year into work from home: Organisations playing major role in well-being of individuals, finds survey (12/04/2021 - Financial Express)
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