Mood in the markets has shifted to extreme optimism, as the dominant narrative is that the economy has managed to control inflation without going through a recession. Corporate earnings have also been better than feared. We feel it’s time to become even more selective..
Month: July 2023
Actionable Insights – July
US stock market indices have belied widely held expectations and gone up substantially in the first half of 2023. The macroeconomic data, however, is telling a different story.
Will the rally continue? It’s possible in the near term as bullish momentum continues. But it’s difficult to see it go on for much longer given the headwinds.
Weekly Newsletter
Investors have turned extremely bullish after latest inflation data showed headline CPI dropping to 3%. Our analysis suggests markets are pricing a near perfect environment, which increases their vulnerability to negative developments in the months ahead.