Ned Davis Warns It May Cut Exposure to US Equities After Selloff
Published On Jan 3, 2025, 1:30 PM
Ned Davis Research is considering reducing its exposure to US equities after observing persistent weakness in market indicators, particularly following a recent selloff and the S&P 500's decline in late December. Chief Global Investment Strategist Tim Hayes indicated that if the Stock/Bond Composite continues to decline and drops below 40%, indicating a bearish territory, they may decrease their allocation from the current maximum of 70%. Despite these concerns, there are still conditions supporting potential gains in equities based on prior performance at the start of the year and current market oversold conditions.
Stock Forecasts
SPY
Negative
This warning from Ned Davis signals potential volatility and a cautious outlook on US equities, particularly if current weakness continues. Investors may want to brace for a market correction in this context, especially as expectations for rate cuts by the Federal Reserve wane.
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