It didn’t take long for the market to turn bearish. So much for the rally that we saw at the end of 2023. In the blink of an eye, traders decided that their bullish bets on half a dozen rate cuts in 2024 were probably a bit over the top.
So, they quickly swung from an aggressive risk-on stance to a defensive risk-off position. They piled out of shares in their droves and sought solace in bonds, the US dollar, and gold. However, it didn’t take much for them to swing back in the other direction. We shouldn’t be too surprised if the market should backtrack again.
But here’s the thing – nothing much has changed apart from market sentiment. And over the next few weeks, we should be able to gauge for ourselves as scores of companies step forward with their quarterly report cards. There will be some that have performed well and some that have done less well....