Do Sentiment and Fundamentals Support the Bullish Recovery From March?
Are we in a genuine bull market? The rebound in risk appetite across the major asset classes since March would suggest so. However, history has shown us that bear market rallies are common place; and the subsequent collapse from these false recoveries can be even more extensive than the initial decline. Taking a closer look at the market mechanics and fundamentals that currently back this rebound, it becomes clear that is real reason to doubt a steady advance from investors’ favorite assets. But first, we should look to the positives. First and foremost, the worst credit and financial crisis since the Great Depression has eased; and we haven’t heard a major rumbling in at least six months. What’s more, the worst recession in the same period has slackened its pace and many developed or developing nations expanding or nearly there. Naturally, this combination is encouraging enough to draw side-lined capital back into the market to seek out returns to perhaps recoup some of the dramatic l
