Several leading investment houses with Wall Street warned that the S & P 500 index could soon experience correction, after strong growth from April minimum to 4,835 points.
From the cross-section on Monday, the reference index is traded at the level of 6,316 points, which represents a jump of 30% from April.
Strategon Morgan Stanley, Mike Wilson believes that S & P 500 could fall up to 10%, as consumers increasingly felt the effects of import customs.
“In previous weeks, we suggested to clients to expect a moderate decline in the third quarter,” said Vilson in the Note of investors.
Evercore ISI analysts believe that the index could weaken up to 15%, because investors entered the euphoria zone, investor me.
Deutsche Bank also predicts correction, assessing that the “decline was long late” after three months of strong returns.
Another reason for caution is a seasonal form. According to Bloomberg, in the past three years August and September were the weakest months for S & P 500, with an average monthly loss of 0.7%.
In the last three months, S & P 500 has achieved a growth of 10.40%.
