FNArena’s Weekly Insights – September 25 2023
In this week’s Weekly Insights:
-Looking For Answers
-Best Ideas & Conviction Calls
-FNArena Talks
By Rudi Filapek-Vandyck, Editor
Looking For Answers
The short term outlook for the Australian share market is, at best, uncertain. This is because there are simply too many conflicting factors to pay attention to.
Last week’s selling pressure on equities was caused by a general reset in bond markets following ongoing higher-for-longer signals from the Federal Reserve. When bond yields move higher, as the market prices out expected rate cuts in 2024, the direct impact is a lower valuation for equities, with some sections harder hit than others.
This impact from left field bonds does not address the fact many an expert believes US equities in particular seem overvalued, as also explained in last week’s update. Here the extra-complicating factor is that much of today’s “overvaluation” can be traced back to those seven megastocks that are also responsible for most of this year’s gains.
One could conclude from this there’s no need to worry, assuming………….
