{"id":171115,"date":"2020-05-26T10:30:27","date_gmt":"2020-05-26T14:30:27","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=171115"},"modified":"2020-05-26T07:05:32","modified_gmt":"2020-05-26T11:05:32","slug":"stock-markets-are-unbalanced-investors-warned","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/05\/stock-markets-are-unbalanced-investors-warned\/","title":{"rendered":"Stock markets are unbalanced, investors warned"},"content":{"rendered":"
May 26, 2020<\/div>
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By George Prior<\/strong><\/p>\n

Wall Street is unbalanced, and investors are in danger of becoming complacent, warns the CEO of one of the world\u2019s largest independent financial advisory and fintech organizations.<\/p>\n

The warning from deVere Group\u2019s Nigel Green comes as U.S. stock futures indicate another strong open Tuesday for Wall Street\u00a0following a long holiday weekend.<\/p>\n

Mr Green says: \u201cWall Street and other stock indices around the world have been, in general terms, rallying in recent weeks as investors jump on fresh Covid-19 vaccine optimism and signals that global economies are beginning to be revived.<\/p>\n

\u201cThere\u2019s an over-riding and far-reaching bullish sentiment in stock markets. However, there are bonafide concerns that investors are in danger of becoming complacent.<\/p>\n

\u201cThis is because the headline figures of rallying markets are not the best barometers of the economy right now. The upswing on Wall Street, for example, is being driven by a handful of companies all within the same sector: tech.\u201d<\/p>

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He continues: \u201cThis global economic downturn is different to others as there are clear winners and losers, whereas in previous ones it has been far less clear-cut and more a question of how much all firms were impacted.<\/p>\n

\u201cThis one has produced enormous financial benefits for some, like tech, and left many struggling and others failing completely.\u201d<\/p>\n

The deVere CEO says that while the booming sectors such as tech, home entertainment and online retailers might \u201cindicate what the future, post-pandemic economy looks like\u201d, it doesn\u2019t reflect underlying economic conditions \u2013 and this \u201ccould catch investors out.\u201d<\/p>\n

He notes: \u201cBuying an exchange-traded fund, or ETF, which are investment funds traded on stock exchanges, could expose a client to a potentially unbalanced market.\u201d<\/p>\n

To navigate the markets when they aren\u2019t reflecting the slew of current poor economic data, investors are urged to work with an experienced fund manager to help them \u201cseek the significant opportunities but to mitigate potential risks.\u201d<\/p>\n

Mr Green concludes: \u201cThe firms which are \u2018winners\u2019 in this downturn are over-represented on many leading global indices, including the benchmark S&P500 index.<\/p>\n

\u201cAs such, they do not necessarily serve as the ideal economic gauge for investment decisions.<\/p>\n

\u201cInvestors must bear this imbalance in mind.\u201d<\/p>\n

About:<\/strong><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.<\/em><\/p>\n

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By George Prior Wall Street is unbalanced, and investors are in danger of becoming complacent, warns the CEO of one of the world\u2019s largest independent financial advisory and fintech organizations. The warning from deVere Group\u2019s Nigel Green comes as U.S. stock futures indicate another strong open Tuesday for Wall Street\u00a0following a long holiday weekend. Mr […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-171115","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/171115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=171115"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/171115\/revisions"}],"predecessor-version":[{"id":171116,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/171115\/revisions\/171116"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=171115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=171115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=171115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}