Tom Samuelson offered his perspective in International Business Times with Panos Mourdoukoutas, Ph.D., about the current global market rally. In this interview, Panos, Tom, and others explore the recent rebound in global equities markets led by Greece's conservative market reforms, U.S. tech sector performance, and Japan's first-quarter growth, which surpassed market consensus estimates.
This article explores...
Is the current U.S. Tech sector performance a risk-on indicator or a potential market top?
Current technology sector performance can indicate broader market growth, but if it is the only one performing well, it could signify that the market is at its peak. However, small-cap, mid-cap, and the average stock in the S&P 500 (SPW Index) have recently broken out of their first-quarter downtrends suggesting a risk-on market backdrop.
The mid-year market update presents a cautious case for a burgeoning bull market.
Many believe the encouraging mid-year market snapshot indicates continued positive global market growth and a burgeoning bull market on the horizon. However, Samuelson remains cautiously optimistic and submits that the U.S. market is currently overbought and could experience a 2-4% decline based on the Fed's "hawkish pause" message on Wednesday. "If the pullback is modest and we see continued follow-through, the bull market likely has legs," he added.
Author: International Business Times with Panos Mourdoukoutas, Ph.D.
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