Why the pros are still cautious (and whether you should be too)

Buy Hold Sell, by Livewire Markets

A recent Bank of America survey found that professional investors are holding their highest levels of cash in 21 years, with the research house's Michael Hartnett declaring the latest survey of 371 global investors "screams macro capitulation, investor capitulation, [and the] start of policy capitulation."

Despite the negative connotation of the above, this could actually be good news for markets. After all, BofA found that the share of investors who believe rates will lower over the next 12 months doubled to 28% in October, while those who see rates going higher dropped from an early 2022 peak of 92% to just 59% during the month.

And with US CPI coming in lower than expected overnight, the bulls could just be right. But that doesn't mean you should throw all caution to the wind. Inflation is still running at an incredibly hot 7.7% (in the US, at least).

So has the bearishness of the market created some crowded trades? And should you be hiding within these stocks too?

To find out, Livewire's Ally Selby was joined by ClearLife Capital's David Moberley and QVG Capital's Josh Clark for their outlook on today's market.

Note: This episode was filmed on Wednesday, November 9th 2022. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/why-the-pros-are-still-cautious-and-whether-you-should-be-too