For Some, A Market ‘Melt-Up’ Is Now The Base Case
The "melt-up" chatter is getting louder.
With the US and China set to hold fire on further trade escalations (at least until Trump decides to take out his Sunday frustrations on his "good friend" in Beijing) and global central banks now pot committed to providing further accommodation, the ingredients for an extension of 2019's equity rally are in the mixing bowl.
Presumably, all it's going to take to whisk them together is a catalyst that pulls in key investor cohorts who have been reluctant
Maybe, but a surprise jump in average hourly earnings on Friday (and the implications for the expected Fed rate cut) could pop this bubble in a hurry.
Was at the dump the other day and noticed a lot of broken clocks that used to be right twice a day……apparently useless now !!!
Anybody worried about earnings this quarter? Or is that just passe at this point?
Nobody worries about earnings any more – what do they have to do with stock prices in 2019?? 😉
SP500 has been almost flat for 1.5 years of violent swings without much real progress. YTD performance may be the “best ever” or suchlike, but 1 yr and 2 yr not so much. Leading indicators have started rolling over, EPS growth likewise, yield curve inverted, the fiscal bullets are all fired, monetary bullets are few, the US ruling party’s actions don’t inspire confidence, and the opposition party’s platform is mostly negative for stock investors. A rally can be manufactured at any time by a tweet, or a technical melt up can kick off. How many will use that as an opportunity to take profits and move to the sidelines?