Will stocks see a further melt-up into year-end?
The big question from here on into year-end is whether fund manager performance anxiety will win the tug of war, i.e. them having to buy stocks to chase the rally, or whether the awful market breadth that is backed by economic gravity (growth data continues to slow) wins. Most pundits are still talking about a year-end rally and while I think some sort of Santa surprise is possible there is also a real threat that we just trot sideways to lower from here on in.
Will this week’s Apple earnings and FOMC statement mark the spot, i.e. the highs of this reflex rally off the September lows? Food for thought.
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