FNArena’s Weekly Insights – July 01 2024

In this week’s Weekly Insights:

-Diverging Risks In A Polarised Market
-Special Report on GenAi, investing in the fourth industrial revolution


By Rudi Filapek-Vandyck, Editor

Diverging Risks In A Polarised Market

One of the proprietary data insights from FNArena is the balance between Buy-Hold-Sell (and equivalent) ratings for those stockbrokers we monitor daily.

As one would expect, apart from collating the data, it’s just as important to pick the correct background and context when interpreting these data. Financial markets change on a daily basis, but their indicators are not per definition a static insight either.

According to our data, the local share market changed in character during the global covid pandemic, and it’s never been its old self since.

Traditionally, the brokers we monitor carry around 9-10% in negative ratings for individual stocks, think Sell, Underweight, Avoid, and all other possible variations.

This leaves Buy and Hold/Neutral ratings vying for the bulk of ratings. As these ratings are usually strongly correlated to share prices, and thus to intrinsic valuations, the definition of a bull or bear market phase is usually rather straightforward:

-if the highest percentage consists of Neutral/Hold ratings the share market is having a jolly great time, otherwise known as a bull market

Click to read the Full Report