Posted on: May 20, 2021 Posted by: Betty Lee Comments: 0

Shares around the globe are consolidating and there may very well be extra losses forward, says Credit score Suisse’s Ray Farris.

The info is turning into “a lot choppier” as world development momentum approaches a peak, Farris, the agency’s South Asia CIO, informed CNBC’s “Squawk Field Asia” on Wednesday.

“We’re most likely going right into a deeper correction in fairness markets globally,” Farris mentioned.

He mentioned, nonetheless, {that a} correction might current buyers with a “nice alternative” after shares globally kicked off the yr with a powerful begin.

By the top of the primary quarter, the S&P 500 stateside jumped practically 6% from its remaining shut of 2020. In that very same interval, the pan-European Stoxx 600 surged round 7.66% whereas the Nikkei 225 in Japan gained 6.32% and Hong Kong’s Hold Seng index jumped 4.21%.

“Our focus has been to not chase the market greater during the last couple of months,” Farris mentioned. “We have been very cautious to be caught at strategic weights for equities in portfolios as a result of we wish to have the sources to make the most of a correction.”

He defined that within the 30 years as much as 2019, “the typical correction was about 14% however the common features from that trough of that correction had been 39%.” Farris mentioned in 2020 the S&P 500 noticed a mean correction of about 9%, whereas the next features had been about 29%.

Markets in a whirlwind

Whereas many main markets posted robust first-quarter performances, equities have been risky in current classes.

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