Global markets traded in a small range and were generally higher overnight. Given the strong rally in markets post the US Presidential election, the question is what should investors do now?
Bill Gross, former Head of the world’s largest Bond Manager Pimco, has recently likened being short (betting against the recent bull market of late – i.e. that markets will fall) as being very difficult, like “stepping in front of a moving freight train”.
We tend to agree with this analogy, as while there are clearly risks in global markets, sentiment and economic data have improved, which has seen a strong surge in share markets. In saying that, we would not be surprised to see some short-term consolidation in markets from current levels. As we have discussed in the past this could likely stem from US politics, particularly given the lack of detail around the Trump administrations plans, some disappointment in the short term is certainly possible.
Anoth...
Stock Markets, Simplified.