Today, we expect a soft opening as world markets are not particularly gung-ho. A long weekend is ahead of us before earnings start to roll in. There might be some consolidation and any fall is not likely to be too big.We’ve come a long way in a year. Whether one should be greedy at this stage is a BIG question after such a stunning rally. The journey from the brink of Great Depression has been spectacular. The moot point is where do we go from here?
The fact that so many people have missed the rally could ensure that the bulls maintain an upper hand. They will be aided by the flaring risk appetite and ample liquidity. But, can the earnings catch up with the bull run? The real test will be when the stimulus is reversed. Inflation could be another party pooper. Valuations are definitely not cheap, though historic peak is still some way away. The question is whether one should wait for that long to realise one’s folly.
The fact that so many people have missed the rally could ensure that the bulls maintain an upper hand. They will be aided by the flaring risk appetite and ample liquidity. But, can the earnings catch up with the bull run? The real test will be when the stimulus is reversed. Inflation could be another party pooper. Valuations are definitely not cheap, though historic peak is still some way away. The question is whether one should wait for that long to realise one’s folly.
