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This stock market has left Wall Street dazed and confused, analyst says

Gramercy Pictures/ Courtesy of Everett Collection
Are you in or out of this market?

Dazed and confused.

That is how Andrew Garthwaite, global equity strategist at Credit Suisse, summed up meetings with investors across the U.S., Asia and Europe over the past few weeks. “Never have we seen so many clients who just do not know what is happening and has cashed up. U.S. investors, in particular, were clearly cautious,” he said in a note on Friday.

“Never have we seen so many clients who just do not know what is happening and has cashed up. U.S. investors, in particular, were clearly cautious.”

Global growth is a worry, China and quantitative easing globally is running out of steam, fears that the Federal Reserve is going to make a policy mistake, the view U.S. equities are expensive are making investors nervous. Garthwaite said he found pessimism on the outlook for growth to be near its highest on record in a recent survey.

That the U.S. is just starting out its third-quarter earnings journey is yet another factor for investors to fret over.

“We met with many clients in the US, Europe and Asia. The wall of bearishness was extreme in the US – roughly 80% of meetings – but much more balanced outside the U.S.,” said Garthwaite. “Often in the US, the question was ‘why isn’t this a bear market?’”

Now that the S&P 500 SPX, +1.49% has...


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