Market Maintains Buying Stance: Supported by Multiple Positives📈
Looking forward, markets are likely to remain on a buy-the-dip mentality given the combination of a disinflationary trend, positive earnings growth (albeit on weaker outlooks), peak terminal Fed Funds, overwhelming US economic soft-landing consensus, strong trading technicals, no government shutdown risks into year-end, and hopes for an improving US-China relationship post President Xi's visit to SF this week. The equity rally is likely somehow overdone in the short-run, but the catalysts for a larger scale sell-off are scant, and we expect this positive run of macro sentiment to persist in the year, at least until the worries of US fiscal largess will inevitably surface again in a few months.
#DisinflationaryTrend
#EarningsGrowth #TradingTechnicals #GovernmentShutdownRisk #USChinaRelations #EquityRally