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Investors see few gains in stocks the rest of 2022, CNBC survey shows

Traders work on the flooring of the New York Stock Exchange (NYSE) in New York City, U.S., June 30, 2022. 

Brendan Mcdermid | Reuters

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A majority of Wall Street buyers imagine the market stands just about useless in the water for the rest of 2022 and, because of this, assume it is time to purchase dividend-paying stocks, in response to the new CNBC Delivering Alpha investor survey. 

We polled about 500 chief funding officers, fairness strategists, portfolio managers and CNBC contributors who handle money about the place they stood on the markets for the rest of 2022. The survey was carried out this week.

When requested “what are you most likely to buy now?,” 42% of respondents stated stocks paying excessive dividends. Less than 18% stated they’d purchase megacap tech stocks proper now.

Unlike development stocks, dividend stocks usually do not provide dramatic worth appreciation, however they do present buyers with a secure supply of earnings throughout occasions of uncertainty. A dividend is a portion of a company’s earnings which are paid out to shareholders.

The market has had a tumultuous year, with the S&P 500 on tempo to wrap up its worst first half since 1970. Investors concern that the Federal Reserve will maintain mountain climbing charges aggressively to tame inflation, at the danger of inflicting an financial downturn. The fairness benchmark has tumbled right into a bear market, down greater than 20% from its file excessive reached in the first week of January.

Forty p.c of the survey respondents imagine the S&P 500 might finish the year above 4,000, which represents a 6% acquire from Thursday’s intraday degree round 3,767 however nonetheless nicely beneath the place it began the year at 4,766. Only 5% assume the index might finish the year above 5,000.

Many notable buyers, from Stanley Druckenmiller to David Einhorn to Leon Cooperman, have been skeptical that the central financial institution will be capable to engineer a so-called “soft landing,” the place development slows however does not contract.

Druckenmiller, for instance, stated the bear market has a methods to run, whereas Cooperman just lately referred to as the S&P 500 to drop 40% from peak to trough and predicted a recession subsequent year.

When requested what their most secure play is true now, half of the respondents stated money. Fifteen p.c selected actual property, whereas 13% stated Treasuries have the lowest danger.

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