Big Investors See 20% Stock Correction in 24 Months, Survey Says

(Bloomberg) -- About 70 percent of institutional investors are “somewhat concerned” that a 20 percent correction in the U.S. stock market could come within the next two years.

Almost 60 percent of those polled say the S&P 500 Index will underperform its 20-year annual average return in 2018, and half say the current market cycle is approaching its end, according to a survey released Tuesday by money manager Commonfund. The survey was conducted in mid-March and included 200 institutional investors from endowments, foundations and public pensions.

Survey participants indicated that trade wars and protectionism were the greatest threat to the global economy, followed by rising interest rates. Emerging markets appear to be the most lucrative asset class, half of the respondents said, ahead of private equity, venture capital and natural resources.

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