Cutting through the Noise: Is the market headed back to 2021?

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 33 sec. here
  • 12 min. at publisher
  • 📊 Quality Score:
  • News: 52%
  • Publisher: 92%

Investment News

Party,Anything,List

Many investors are scratching their heads and wondering about the continued rise of stock prices, a run that started in the fall of 2022. Is it real or are things getting carried away?

During a cross-Canada tour last month, we addressed this question. Our chief investment officer, Salman Ahmed, told clients that things are normal, more normal than they’ve been in many years. He provided a checklist.is expected to keep growing, as are corporate profits. Check. Stock valuations have risen in recent months but are still within their historical range. Check. Fixed-income securities offer yields that are in excess of. Check. People are worried about politics and the next recession.

Fortunately, or unfortunately, depending on your perspective, rising interest rates wrecked the party and caused a nasty hangover in 2022. I like to think of it as a much-needed period of normalization. Some of these strategies have investment merit but, as in 2021, what’s noteworthy is how many high-risk, high-volatility, high-valuation things are raging at the same time.

So, is excessive speculative behaviour something to be concerned about? The answer is yes. It rarely produces lasting returns and often leads to disappointment. It can also reflect more broadly a complacency in the market toward risk and unrealistic expectations.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in BUSİNESS
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Morning Bid: Asian stocks eye best run since 2021Monday's global market moves encapsulated the 'FOMO' that seems to be fueling the ongoing risk rally - volatility, the dollar, bond yields and geopolitical...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »