After a good start to the US reporting season, the tide on the US stock exchanges turned last week. Find out more in our new blog.
The probability that there is another leg up for global equity markets is bigger than a significant correction in the near-term. However, there are no guarantees when it comes to investments in stocks in contrast to, as somebody said, the purchase of a vacuum cleaner. In case that the earnings momentum is cooling down or, for example, the macro-backdrop deteriorates, an extended period of equity markets going sideways or a correction cannot be excluded.
From a technical point of view, the concept of a “year-end rally” is a myth. At least, this is what empirical evidence is telling us. In the past 10 years, the S&P 500, for example, posted a December performance, on average, of 1.12%, making December only the 5th-best month of the year (Fig.1). Over the […]