Do Funds Expect a Market Downturn?

Amid a downwardly volatile market, everyone in finance has an opinion on what the future may hold. Is this another short term hiccup or the beginning of a much more serious correction?

SumZero recently asked the 12,000 members of its professional investing community for their sentiments on the possibility of major economic downturn. The results are neither frightening nor comforting. Only ten percent of respondents predict an immediate market collapse, but almost sixty percent expect some kind of recession with the next 24 months.

SumZero co-founder and CEO Divya Narendra echoed the community's sentiments. "I don't expect the US to fall into a recession this year. Record low unemployment combined with strong corporate balance sheets indicate the we are, at least for the foreseeable future, well positioned versus other nations. The US is still the global innovation leader and can lay claim to nearly all of the top 10 most valuable companies in the world by market cap. Could the US be growing faster? Absolutely, but there is a meaningful gap between slow growth and recession. With respect to the financial markets, a lot of this pessimism seems to be priced in."

SumZero is the world's largest community of investment professionals working at hedge funds, mutual funds, and private equity funds. With over 3,500 funds active on the platform, SumZero is the fast-growing voice of the fund industry.

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