According to the survey conducted by Bank of America, experts in the financial sector think that the American economy will enter an upward trend. These experts who started to turn to the stock markets again; They have very bullish views on the S & P500 Index.
Bank of America, the giant bank of the USA, conducted a survey of more than 200 hedge funds between August 7-13. These hedge funds, which have a total assets of 500 billion dollars under their management; They shared their expectations for the future of the American economy and markets.
The results of the survey were very positive for the US economy. The pessimistic attitude that the finance experts displayed until a month ago seems to have been replaced by a slightly more optimistic attitude. Because these experts think that the US economy, which is badly injured by the coronavirus, can recover quickly.
Expectations Are High
The S & P500 Index in the USA has been hit hard this year due to the Coronavirus. As the coronavirus wave intensified in March, the S & P500 crashed to the ground. However, the markets in the USA have recovered quite well in these few months. The S & P500 has risen more than 50% during this period and has started to give investors hope again.
47% of the financial experts surveyed by the Bank of America last month had a bearish attitude towards the future of the US stock markets. The rate of those who believed that the markets would rise was around 40%. However, according to the results of the August survey published by Bank of America this week, 46% of hedge funds are bullish; 35% is in a bearish position. It is thought that the course of the market will affect the coronavirus, the tension between the USA and China and the presidential elections in the USA.
According to these financial experts, the improvement in the markets will also be reflected in the economy. 79% of hedge funds think that the American economy will improve in the coming period. 37% of the experts participating in the survey expect the economy to draw a graph in the form of a W, 31% in a U-shape, and 17% in a V-shape.
Gold Is More Valuable Than It Should Be
While the stock markets in the USA lost strength, there was a big jump, especially in the gold market. Ounce of gold, which hovered in the range of $ 1,300-1,500 at the beginning of this year, rose to an all-time high of $ 2,070 last week. Gold, which has gained 30% since the beginning of the year, is currently traded at $ 1,947.
Experts surveyed by Bank of America think that the price of gold is higher than it should be. 31% of these experts, who think the economy will start to improve, think that gold is in overvalued state. This is a very serious rate because the proportion of experts who think gold is overvalued has never been higher since 2011.