Home Investments US Stocks Will Continue to Rally

US Stocks Will Continue to Rally

#stocks #rally


“Economic challenges abound, and equities will rally climbing the ‘wall of worry'”— Paul Ebeling

The closely-watched monthly fund manager survey from Bank of America-Merrill Lynch indicate positive sentiment.

But some analysts surveyed are Bearish: their cash positions are the highest in a yr, as global economic growth expectations went South for the 1st time since April 2020.

At the same time, they are still holding stocks, with a 50% weighting. The overwhelming threat, as well as motivation, appears to be inflation, with 48% citing it as their Top risk. It is also informing investment decisions, driving fund managers into banks and out of utilities, a classic trade when interest rates are seen rising.

We are not overly concerned about inflation or the looming property-debt crisis in China bleeding outside the Mainland.

In the meantime, stocks have consolidated and legged up, with the S&P 500 rising near its all-time closing high. The benchmark has risen 20% YTD. 

Have a prosperous day, Keep the Faith!

Previous articleIncrease the Resilience of Urban Food Systems
Next articleFerrari’s (NYSE:RACE) Periodic Report on the Buyback Program
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.