首页 News 正文

People haven't completely transitioned from fear to greed yet! Da Mo: US stocks can continue to rise

六月清晨搅
224 0 0

Andrew Slimmon, Senior Portfolio Manager at Morgan Stanley Investment Management, stated on Tuesday that even as the US stock market hit a historic high, investors still hold onto cash, indicating that there is still considerable room for the market to expand gains.
Slimmon pointed out in an interview that low expectations for stocks and a preference for 5% -6% short-term US Treasury yields indicate that the market is still in the "fear" stage of the current cycle.
Slimmon pointed out that this is a typical phenomenon in the early stages of a bull market. In the later stages of a bull market, people will expect higher returns.
The US stock market rose again on Tuesday, continuing its upward trend since May. The S&P 500 index rose 0.3%, reaching its 24th closing record high for the year. The Nasdaq Composite Index also hit a new high, rising 0.2%. The Dow Jones Industrial Average rose 66 points, or 0.2%. These three major indices have all risen at least 5.4% this month.
Investors still hold a large amount of ammunition
Slimmon stated that the valuations of many stocks are currently quite reasonable, and the large amount of funds in the money market may drive the next wave of stock market growth.
In Slimmon's view, although the S&P 500 index has risen 11% this year, traders are still betting that the Federal Reserve will start cutting interest rates later this year, but investor confidence is not very strong.
According to the latest data from the Investment Company Institute, the amount of funds flowing into money market funds increased by over $16 billion in the week ending May 15th, reaching over $600 billion.
Slimmon stated that the large amount of cash still waiting to be deployed will be a catalyst for further market growth, as if stocks continue to rise, people's fear of short selling (FOMO) will become very strong.
He pointed out that this would be more motivating than a decrease in US Treasury yields. Last year, when the S&P 500 index surged by 24%, this portfolio manager's optimistic prediction was proven to be correct.
Greed emotions still need to be stimulated
Slimmon said, "From a typical cycle of fear to greed, we are still in the fear stage. I completely believe that only continuously increasing stock returns can make people no longer wait and see."
He added that expectations of sustained growth in corporate profits and easing inflation should encourage investors to become more optimistic.
Of course, this does not mean that an increase will be smooth sailing. Slimmon predicts that there may be a pullback in the US stock market, such as the risk of a pullback during this summer's seasonal weakness.
It is worth mentioning that on the day before Slimmon's statement, his colleague at Morgan Stanley, Chief Stock Strategist Mike Wilson, had just significantly increased his forecast for the next 12 months of the S&P 500 index.
Wilson's latest forecast is that the S&P 500 index will rise 2% to 5400 points by June 2025.
CandyLake.com 系信息发布平台,仅提供信息存储空间服务。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
您需要登录后才可以回帖 登录 | 立即注册

本版积分规则

  •   苹果知名分析师郭明錤周四(10月31日)在社交媒体上发文表示,苹果明年可能会减少对芯片制造商博通Wi-Fi芯片的依赖,并推出自己的处理器。   郭明錤在社交媒体平台X上写道,“在2025年下半年的新产品(例如iPh ...
    uturn
    前天 14:42
    支持
    反对
    回复
    收藏
  •   10月30日,小鹏汽车生态企业小鹏汇天宣布,旗下分体式飞行汽车“陆地航母”即将亮相2024中国航展,11月12日将在中国航展第二展区(斗门莲洲)进行全球首次公开飞行,同时“陆地航母”也将在珠海国际航展中心8号 ...
    yxtianyouyou
    3 天前
    支持
    反对
    回复
    收藏
  •   交易所监管文件显示,当地时间11月1日,亚马逊创始人杰夫·贝索斯拟出售约1635万股亚马逊股票,预计套现约30.5亿美元。今年7月,贝索斯已申请额外出售约2500万股亚马逊股票,按当时股价计算可套现约50亿美元。 ...
    blueskybb
    昨天 09:27
    支持
    反对
    回复
    收藏
  •   近日,凯撒海湾目的地(山东)运营管理有限责任公司(简称“凯撒海湾”)与携程旅悦集团签署战略合作协议,双方将围绕“海上目的地运营”、“旅游产品与服务创新”、“研学旅行”、“日韩及海外旅游市场开拓”等 ...
    llyyy2008
    昨天 11:01
    支持
    反对
    回复
    收藏
六月清晨搅 注册会员
  • 粉丝

    0

  • 关注

    0

  • 主题

    30