Economics
Stocks Face 50% Odds of Correction in 2020, Vanguard’s Davis Says
- The $5.6 trillion manager predicts pickup in volatility
- Davis says markets may be getting ahead of themselves
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U.S. stocks face a greater-than-usual risk of a sell-off next year, with investors overconfident in an economic resurgence, according to Vanguard Group Inc.’s investment-strategy chief.
“Financial markets run the risk of getting ahead of themselves,” Joseph Davis, who also serves as Vanguard’s chief economist, said in an interview Friday. He sees 50% odds on a correction in 2020, against what he terms a more typical figure of about 30%.