For her, how and where the market moves boils down to three key elements. First, sentiment must be positive. Secondly, it must be supported by earnings and, thirdly, by valuations.
Markets are volatile, with stormy rain alternating with sunny blue skies. Just four months ago, global markets started on a “very weak” note. The US shocked the entire Americas and beyond with the invasion of Venezuela, which was followed by the attacks on Iran. As a result, markets suffered a huge sell-off.
Yet in April, almost all key indices recovered, hitting new all-time highs, with the S&P 500 seemingly set for another strong double-digit gain this year. “Effectively, the market ignored the volatility and risk appetite came back into the market,” says Carmen Lee, head of equity research at OCBC Group Research.
