U.S. stocks worried amid dimming economic data

NEW YORK, Investors are preparing their portfolios for a potentially rocky patch in U.S. stocks, worried that a dramatic rebound in equities may stall amid dimming economic data.
Still, the continued divergence between stocks and the real economy has worried some investors. U.S. growth took its worst hit on record in the second quarter, while more recent data points to fading consumer confidence and jobless claims back on the rise.
The S&P 500, meanwhile, stands some 4% below all-time highs, though its weekly advances have grown progressively smaller in July.
Performance of options strategies designed to profit in sideways markets – such as the “iron condor,” which involves long and short positions on both calls and puts – has also improved.
Net outflows from equity funds were $1.8 billion in the fourth week of July, while bond funds took in $17.2 billion and money market funds received $5.5 billion, Reuters reported.

 

Source: Saudi Press Agency

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