The fundamental analysis fans who hold the distinguished CFA (chartered financial analyst) title believe the stock market has gotten too hot for its britches.
A new survey out Tuesday from the CFA Institute found that 45% of respondents think stocks in their respective markets have recovered too quickly. The cohort expects a correction in stock prices within the next one to three years, though the precise degree of the said pullback wasn't shared.
The CFA Institute's survey reflected feedback from 6,400 of its members globally.
“It is interesting to see the survey results telling us that respondents believe that equities have recovered too quickly, as it could show that CFA Institute members believe there is a disconnect between economic growth fundamentals and capital markets caused in part by monetary stimulus, which could be corrected in a not-too-distant future of less than three years,” said CFA Institute managing director of research, advocacy and standards Paul Andrews in a statement. “To me, it also indicates to authorities that monetary stimulus is not a simple or linear lever to pull given the complexity of the economic and financial ecosystem; there will be unintended consequences to consider in the future.”