Investors believe stocks have recovered quickly and expect a correction

Madrid, Jun 9 (.) .- International investors believe that the stock markets have recovered “too quickly” after the crisis generated by the coronavirus and foresee a possible correction in a time frame of one to three years.

This is one of the main conclusions of a survey conducted by the global association of investment professionals (CFA Institute) among its international members to analyze how the coronavirus has impacted the investment industry and financial markets.

CFA Institute Managing Director of Research, Advocacy and Standards, Paul Andrews, explains that the survey results show that the majority sentiment of investment professionals is that financial assets have recovered too quickly.

“This could indicate that our CFA Institute members think that there is a disconnect between the fundamentals of economic growth and capital markets, caused in part by monetary stimulus, with a glimpse of a possible correction in the not too distant future, of less than three years, “he adds.

For Andrews it is also an indication to the authorities that the monetary stimulus “is not a simple lever to pull it, given the complexity of the economic and financial ecosystem. There will be unintended consequences to consider in the future,” he says.

The survey also reveals that the proportion of investors who believe that equities are fairly valued is low in all regions (between 2% and 16%).

On the other hand, of the 6,040 respondents from around the world, the position of professionals on volatility has changed notably over the past year, “possibly attributable to decisive initiatives by the authorities to control possible market disruption through the intervention of policies and monetary stimulus, “adds the study.

(c) . Agency

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