Stock Market Rally: How Long Can It Last?

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Hefty gains over the past week are bringing smiles. But what the Fed does on rates is still the big X factor.

The calendar says November, but it seems more like Christmas after the past week on Wall Street. All three indexes shot higher to their best weeks all year. The nagging question now is whether the rally can last.

It was a “Whew!” moment after a difficult few months. But it might be too soon to get confident that this run will last. Indeed, the Fed’s signal last week that the end of rate hikes is approaching is a double-edged sword if data are showing a shakier economy, which many third-quarter earnings reports point to.

Essaye argues that the market is largely “searching for ‘what’s next’ and not riding a wave of sustainably new information .”Gavekal Research’s Will Denyer is firmly in the latter camp, arguing investors should get out of equities while the getting is good.

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