Weekend Reading – A Justifiable Rally

It’s surely a coincidence that the recent market rally occurred during the partial shutdown of the U.S. government

 

More conventional rally catalysts were the over-sold conditions created by excessive pessimism about growth and a dovish shift from the Federal Reserve. Equity valuations had fallen below long-term averages across most markets, and the increase in credit spreads was leading some forecasters to meaningfully raise their expectations of a recession by 2020. The ensuing rally in risk assets has been corroborated by the meaningful narrowing of credit spreads.

 

Is the bounce back for real?

Comments


Contact

We're ready to assist you

If you are looking ahead to how you can best invest your money for the future, our advisors would be happy to talk with you.

Contact us today