While most pros think the stock market’s next 20% move will be lower, 30% believe it will go higher. The bearish case seems most likely than the bullish case as the recovery is bumpy. A slowdown in virus cases or a vaccine could accelerate the recovery and push equities to higher levels.
According to Citigroup’s quarterly survey, nearly 70% of asset managers expect that a 20% correction is more likely than a 20% move higher in the stock market. This means that 30% of them expect the next 20% move to be higher. Strategist Tom Lee is still bullish despite the pandemic having a worse economic effect than the Great Depression.
It might seem surprising that almost a third of the pros are bullish about the stock market despite all the headwinds it’s facing.
While buy-side managers have an average weighted target for the S&P 500 that is almost flat compared to current levels at 3,027 by the end