A trading clerk in the S&P 500 futures pit of the Chicago Mercantile Exchange rests his hands on his head as he watches the price board during mid-day trading in Chicago, Illinois.(Photographer: Tannen Maury/Bloomberg News)

Worst Yet to Come for S&P 500 Is the Consensus of Money Managers

(Bloomberg) -- If you think the tremors that struck equities this month have yet to play themselves out, you’re not alone.

About 57 percent of investors surveyed by Strategas Research Partners expect the S&P 500 Index to break the intraday low of 2,533 reached on Feb. 9, while the rest say the market has bottomed for the year after a two-week selloff sent the index to its first 10 percent correction since 2016. The poll, conducted Feb. 16, covered roughly 500 institutional investors.

Worst Yet to Come for S&P 500 Is the Consensus of Money Managers

The survey highlights elevated levels of doubt among professionals even as a weeklong advance helped the S&P 500 claw back half of its losses. That may make sense given one catalyst that triggered the selloff, rising bond yields, hasn’t gone away. Strategists from Bank of America and Morgan Stanley are now warning that too much growth will set the stage for future deceleration.

Worst Yet to Come for S&P 500 Is the Consensus of Money Managers

Skeptics also have history on their side. In each of the last two corrections from 2015 to 2016, the S&P 500 revisited the initial lows within weeks before making a full recovery.

©2018 Bloomberg L.P.