12 November 2018
Weekly Insights From The FNArena News Desk 06/11/18
“There is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again.”
[Jesse Livermore, legendary speculator]
After an unusually savage October sell-off, the subsequent bounce back rally has been rather mild and unconvincing in character, raising the obvious question: is there a message in there somewhere about the future direction for risk assets?
To some with a negative mindset, and on my observation there is a growing number of bears out there, the answer is unequivocally affirmative. The weak bounce, these expert voices argue, is but another bad omen for what the future holds for global investors in risk assets.
I am not yet convinced by this argument, as there simply is too much uncertainty out there to allow for a quicker & bolder move upwards. Within this context, I’d suggest it would have been rather surprising if equity markets by now had rallied strongly at a time when corporate results in the US are rather lukewarmly received, while stress is rising in Europe, the Federal Reserve is about to provide an update, bond yields are on the rise (again), and all eyes are on deteriorating indicators for the Chinese economy.
< Back to Blog