Stocks Are In and Bonds Are Out: Top Trades for the Rest of the Year
- US equities seen as top-performing asset in fourth quarter
- China’s stock rally revives appetite for emerging markets
Investor confidence that the Fed can engineer a soft landing has grown, putting the S&P 500 Index on track to gain in September for the first time since 2019.
Photographer: Alex Kent/BloombergThis article is for subscribers only.
US stocks will outperform the nation’s government and corporate bonds for the rest of this year as the Federal Reserve keeps cutting interest rates, the latest Bloomberg Markets Live Pulse survey shows.
Exactly 60% of the 499 respondents said they expect US equities will deliver the best returns in the fourth quarter. Outside of the US, 59% said they prefer emerging markets to developed ones. And as they ramp up these bets, they’re avoiding traditional ports of calm, such as Treasuries, the dollar and gold.