Investment Manager Index8 Feb 2022 20:31
US equity investors remain risk averse amid mounting headwinds
Chris Williamson, Executive Director at IHS Markit and report author, said:
“Risk aversion continues to dominate US equity investor sentiment, with mounting concerns over macro headwinds of Fed rate hikes coinciding with the scaling back of pandemic fiscal policy stimulus. Inflation and esclating geopolitical uncertainty also threaten to put further pressure on earnings growth. Investors are therefore focusing on equity fundamentals and shareholder value, with financial and energy stocks once again leading the rankings.”
Also commenting on the survey results, Thomas Matheson, head of dividend forecasting at IHS Markit, said:
“The increasing importance of buybacks and dividends indicate investors are laser-focused on capital allocation to shareholders as they look for ways to enhance returns in a volatile market. Repurchases help stabilize and raise prices and in some cases provide a price floor, and we have seen a marked increase in their importance for investors. We are forecasting US dividend payments to return to growth this year, up 5.4% after remaining broadly flat last year.”
https://www.markiteconomics.com/Public/Home/PressRelease/95dfdca9b2874d009ba5cd8c9fabda5e