FNArena’s Weekly Insights – April 02 2024
In this week’s Weekly Insights:
-Everybody Worried?
-Gold As Insurance
-Westpac, Technology Laggard
-Conviction Calls and Best Buys
-Rudi Unplugged – Send In Your Questions
By Rudi Filapek-Vandyck, Editor
Everybody Worried?
Bubble. Hype. Overpriced and overbought. These are all popular terms used by market commentators and investment experts in relationship to share markets in the US and locally in recent times.
Not a day goes by or various comparisons with the Nasdaq in 2000, Japan in the late 1980s, 1987, the Nifty Fifty era or the 1930s are being made. It’s not difficult to understand why investors are getting nervous, including subscribers here at FNArena.
And yet, I am not overly worried. When it comes to those aforementioned historical comparisons: my view is they are way, way, way too simplistic, with too much hyperbole attached.
Okay, after two strong quarters, as we’ve just experienced, it’s not unusual for markets to pause and consolidate, they might even pull back, who knows? On short-term technical indicators, markets are overbought, so there’s reason to expect some weakness at some point.
But I wouldn’t hold my breath for a Grand Correction. I simply don’t see a valid reason for this to occur, other than wishful thinking by those who want the market to undergo a big correction out of self-interest.
