Wall Street strategists appear unconvinced by the U.S. right now. Here's where they suggest investing instead.
The S & P 500 notched an impressive performance in the first quarter, gaining 7% despite turmoil in the banking sector and a series of interest rate hikes. But Wall Street strategists appear unconvinced that U.S. stocks are the best place to be looking ahead, citing tighter financial conditions, declining corporate earnings, and relatively high valuations among other factors.
last week that a recession looks very likely in the next six to 12 months, with "cracks starting to form" in the economy. Risk assets are underestimating the prospect of a recession, with equities still priced at 22% above typical recessionary valuations, he added. There's also the possibility that markets could be wrong about the possibility of a rate cut by the Federal Reserve.
Delivering Alpha investor survey saying the S & P 500 could see declines ahead. Where to put money Against this backdrop, where should investors put their money? Some strategists believe Europe's the place to be. Goldman Sachs ' Chief Global Equity Strategist Peter Oppenheimer said the U.S. equity market remains "expensive relative to history" and believes European stocks are set to outperform their U.S. peers.
Pro's analysis of S & P 500 index data on FactSet dating back to 1928 showed that if there is a rebound in the first quarter following a down year for S & P 500, the index rises 78% of the time in April. That suggests there could be more upside ahead for U.S. stocks after a winning first quarter. —
's Yun Li and Ganesh Rao contributed to reporting
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