Betting that Trump won't let the US stock market fall
The earnings season is nearing its end, with Meituan (03690.HK), Zoom (ZM.O), Dell (DELL.N), and others reporting next week.
This week, the "Trump trade" has once again become the tone of the US stock market. Fundstrat's Thomas Lee believes that given President Trump's deregulation plans and the prevailing "animal spirits", small-cap stocks and cyclical stocks still have room to rise. He also believes that "Trump put options" will keep the market active. The belief that Trump won't let the economy stagnate is helping the US stock market rise, at least for now.
Lee believes: "When sentiment reaches the 'bullish extreme', that’s when we see stock prices 'perfectly'. From several perspectives, we have not yet reached that level."
Bank of America's strategists believe that the Nasdaq 100 index has accumulated a gain of over 4% this month, and relative to the S&P 500 index, the Nasdaq 100 index is approaching a level that could trigger a market liquidation in the US stock market.
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