Opinions on the stock market: After the bull rally...
Article written on 28 June 2023
The sizeable revision to Nvidia second-quarter revenue forecasts set off a series of events on the markets. Valuations of AI stocks rose, cheering investors’ spirits.
According to AAII, the percentage of investors who are optimistic has risen to 42.9%, which both underscores the positioning in the markets and supports consumer confidence.
This definitely does not suit Fed Chairman Jerome Powell, because rising consumer spending is continuing to drive inflation and causing interest rates to remain high. At the same time, company stock buyback programmes are halted in the run-up to the reporting season, which may cause more selling pressure. In the circumstances, the kinds of defensive positions that can be seen in the MSCI Healthcare Index look attractive.
