Stifle came out and highlighted its call for a correction taking place already was wrong from a timing standpoint, but the financial institution still believes that a correction is looming and predicts Wall Street will see one by the end of October.
“Our concerns and expectation for just over a 10% S&P 500 correction by Oct-2024 are largely the same, but our timing in expressing those concerns three months ago was too early and thus wrong. Our view now is the 5,000 range for the S&P 500 (prior view a 10% correction to 4,750), still by Oct-2024,” Stifel stated in an investor note.
Additionally, the investment bank also anticipates slower than expected growth in the second half of 2024 and has a negative view for equities, particularly overextended growth focused names. Therefore, the firm provided that it’s preferences are geared more towards defensive value segments of the market such as Health Care, Consumer Staples, Utilities, and quality as a whole.
Furthermore, Stifel is not the only financial institution that believes that a correction is on the horizon, Piper Sandler recently stated: “We expect a deeper pullback/correction in the coming months.”
For investors looking to track the performance of the benchmark S&P 500, they can shift their eyes towards both exchange traded funds and mutual funds as a proxy for exposure towards the index. Some funds worth examining are as follows: (NYSEARCA:VOO), (NYSEARCA:SPY), (NYSEARCA:IVV), (SSO), (UPRO), (NYSEARCA:SH), (SDS), (SPXU), (FXAIX), (VFIAX), and (VFFSX).