Is Wall Street ready to break a five-session losing streak? Stocks look mixed in early trading, as September, so far, shapes up just as many pundits predicted — dogged by seasonal weakness, plus the ongoing pandemic fallout.
Our call of the day comes from a fresh Deutsche Bank survey, which finds that 58% of 550 global market professionals polled now expect a 5% to 10% stock pullback by end 2021.
Valuations are just another brick on the wall of worry that investors keep climbing that includes the delta variant, inflation, central bank tapering, rising shipping costs that could spoil Christmas, etc. This next chart from Deutsche Bank shows the two main bricks running neck and neck:
But as Deutsche Bank strategist Jim Reid and research analyst Karthik Nagalingam, also pose the question (included in the above chart): “Are too many expecting it will happen”? The bank’s chief strategist Binky Chadha last week warned of a “hard correction,” amid ever-rising valuations, amid caution from other big banks.