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- Risk appetite sinks to lowest since September as mood darkens among US equity investors
- Recession worries dominate, with macro environment and central bank policy again seen as the biggest drags on the market, but valuations have also now shifted to being a perceived drag as prospects worsen
- Healthcare ranked as most favored sector, real estate suffers most bearish views
Commenting on the results, Chris Williamson, Executive Director at S&P Global Market Intelligence and author of the report, said:
“The mood among US equity investors has soured in December, with the tentative return of risk appetite seen in October evaporating further. With almost one-in-eight investors anticipating a deep recession, and a further 70% expecting a mild recession, the macro environment remains a key concern for the markets. Equity fundamentals and shareholder returns are consequently set to provide less support to stocks than previously anticipated, raising a new degree of concern over valuations.
“One bright spot was that sentiment seems to have started to improve for consumer-facing stocks, linked to signs that inflation has peaked and a shallower Fed rate hike path trajectory, though this in turn largely reflects the perceived heightened recession risks.”
The full report is available here: S&P Global Investment Manager Index.
