 Investors believe it's time to get very conservative in the stock market Results from the inaugural Delivering Alpha Investor Survey Wall Street investors believe it's time to take some risk off the table as concerns continue to pile up this month, according to the new CNBC Delivering Alpha Investor Survey.
We polled about 400 chief investment officers, equity strategists, portfolio managers and CNBC contributors who manage money about where they stood on the markets for the rest of 2021 and next year. The survey was conducted this week.
More than three quarters of the respondents said now is a time to be very conservative in the stock market when asked what kind of market risk they are willing to accept for themselves and their clients.  A confluence of uncertainties have emerged in the market, threatening to derail stocks' record-setting recovery rally. On Monday, the S&P 500 suffered its worst sell-off since May as investors grew concerned about China's troubling real estate sector and the Federal Reserve's likely rollback of its massive stimulus. |
The Federal Reserve could soon take its first big step away from ultra-easy monetary policy, and investors believe it could trigger significant moves in the markets, according to the survey.
The central bank may begin to taper its $120 billion in emergency monthly bond purchases. Once the rollback begins, most investors (70%) expect the 10-year Treasury yield to go higher, according to the survey.
After this week's pullback, the S&P 500 is about 4.2% off its record high from early September. The benchmark is still up about 16% this year following eight consecutive months of gains. Many believe the market is experiencing seasonal weakness in a historically choppy month of September.
"There seems to be a change in market sentiment over the past couple of weeks that favors the bears," said Brian Price, head of investment management at Commonwealth Financial Network. "After a relatively quiet summer where the path of least resistance for equities was steadily higher it seems as though market participants are looking to fade this year's rally." -Yun Li and Patricia Martell
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