- The exuberance that has carried stocks this year is yet to convince professional investors
- We look at where caution might be warranted, and why
To say markets have climbed a wall of worry this year is something of an understatement. Many indices already sit on substantial gains for 2023, even as inflationary pressures and recession fears persist. As in many moments of the last decade, those sitting on the sidelines have missed out on plenty of gains.
And yet, few champagne corks seem to be popping. A look at outlooks issued by asset management firms and multi-asset teams in recent weeks, as they assess prospects for the second half of this year, shows that the pessimism evident from the end of 2022 is still mainly in force, at least when it comes to equities. That could serve as a warning sign for some, and as a contrarian buying signal for those with an adventurous (and/or long-term) approach.