Wednesday, April 3, 2019

A "green shoots" rally ahead?

Mid-week market update: Even as the slowdown gloom overtook the market in the past few weeks, stock prices did not break down. Now, the storm seems to be passing as green shoots of growth are starting to appear.

For equity investors, the most notable change was the reversal in forward 12-month EPS estimates, which bottomed and begun to rise again. This is an indication of the return of bullish fundamental momentum.

The combination of an unexpected growth turnaround and excessively cautious positioning is sparking a "green shoots" risk-on rally.

The full post can be found here.

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