Schroder Investment: Three types of "bears" are raging in the volatile global stock market

Schroders' Co-Head of Investments and Group Chief Investment Officer Johanna Kyrklund stated that in the volatile global stock market, there are three different types of "bears" wreaking havoc. The first type of "bear" is the macro hedge fund industry, which is being affected by the unwinding of yen carry trades. The second type of "bear" is trend-following traders and systematic traders, who have already executed the first round of trades. The third type of "bear" is fundamental analysis investors, who are more focused on medium-term performance. The financial markets have already priced in the expectation that the Federal Reserve will cut interest rates 5 to 6 times by the end of 2024, a view that has started to deviate from reality and become more extreme. As long as the credit market and labor market remain robust, asset valuations have not yet fallen to the point where it would be prudent to make large-scale asset purchases regardless of economic cycle factors