Date: October 11, 2021
News Author(s): Bloomberg
Photo Credit: Investing.com
Stagflation fears may be rising, but strategists at some of Wall Street’s biggest banks say it’s a good time to buy the dip in stocks.
“Despite near-term uncertainty, we expect the equity market will continue to rally as investors gain confidence that the current pace of inflation is transitory,” Goldman Sachs Group Inc (NYSE:GS). strategists led by David J. Kostin wrote in a note to clients.
Strategists at JPMorgan Chase & Co. (NYSE:JPM) led by Mislav Matejka concurred, writing that stagflation fears will start to fade.
Jitters over surging prices and concerns that the post-pandemic rebound is now past its peak dragged the S&P 500 Index 5% below its September record last week, after almost a year without a correction of this magnitude. Persistent supply bottlenecks, along with a slowdown in China, have raised doubts about whether stock valuations can be stretched any further.
A Deutsche Bank AG (NYSE:DB) survey of market professionals suggested that the majority of them see at least another 5% pullback in equities by the end of the year. There’s “a fairly strong consensus” that some kind of stagflation is more likely than not, according to the survey results published Monday.
Goldman and JP Morgan resoundingly disagree.
“We believe this dip will prove a good buying opportunity, as 5% pullbacks usually have in the past,” Goldman strategists said. “We finally got some weakness after 330 days of no greater than 5%+ pullback, but we don’t expect it to last, and advise to buy into the dip,” JPMorgan strategists wrote.
©2021 Bloomberg L.P.
Keywords: sterlinghousetrust.com, Sterling House Trust, SHT
Sterling House Trust is a private trust with a difference. It offers its members an exclusive and reliable platform to access unique opportunities and lifestyle services reserved for the select few. With its team of professional managers Sterling House Trust constantly scans the markets and collaborate with reliable global partners to create a portfolio of carefully curated programmes for its members. Members can access these programmes according to their individual needs, interest and financial capacity. Sterling House Trust is headquartered in Auckland, New Zealand, and has operations based in London, UK.
The Sterling House Trust platform was established with the objective of providing its members, secure access to opportunities across a range of global locations, sectors and services.
Our unique Platform was established within the framework of a trust so that the trust would have oversight and governance over the range of services and its quality. Member protection is a core principle and drive in all that we do. Our trustees ensures that the interests and quality of service provided by the Platform are always maintained at the highest standards.
The trust and its trustees provide robust oversight and is constantly on the move to identify and shortlist select opportunities in the international markets. Likewise, we apply the same stringent standards in identifying and selecting providers and professional partners to join our Platform.
The Sterling House Trust Platform utilises our international footfall and relationships to provide our members with access to a range of international opportunities via our global network which covers a broad range of sectors including:
Asset protection, international property ownership and management, alternative and direct ownership, estate planning, banking services, foreign exchange, card services, alternative investment and lifestyle services.
New Zealand Head Office
31/335 Lincoln Road,
14-16 Dowgate Hill,
England EC4R 2SU