Equities' fast recovery spells correction in one to three years - CFA survey

Equities 'out of sync' with the real economy

Equities have recovered too quickly and investors should expect a correction within the next one to three years, according to CFA Institute members.

The survey by the global association of investment professionals showed that 45% of its members believe equities in their respective markets have recovered too quickly and that they expect a correction within the next one to three years. Respondents in North America are more worried about a correction than Europeans (50% versus 40%), which can be explained by the pace of equity markets' recovery in both regions since March 2020, according to the report. Members in emerging markets appear more optimistic that equities in their own market and in global emerging markets will gradually st...