Via a note from HSBC, analysts at the bank expect equities to take a breather:
- “we remain constructive on equities strategically"
- "we expect a temporary pause in the rally”
- “Global equities have overshot our machine learning (ML) model’s prediction by 10% over the last 3 months”
HSBC specifically mention stock pricing vulnerabilities:
- any hawkish signalling from the Fed
- upside surprises in inflation
HSBC says the most attractive sectors include consumer staples, energy and health care. Also like such sectors for equities in China, the UAE and Switzerland.
