Carlsquare weekly letter: Christmas has come early for stock traders this year
Prenumeration
With US equities still at all-time highs, even as China falls over, there is a lot of rotation going on below the surface. We stick to our view that China is still a valid play, but if we could have one wish it would be for the market to pause and make way for the real Santa Claus rally.
In the US, the third quarter-reports have already started to come in. They have generally been better than expected, with 79% of the US companies beating analysts' forecasts. Typically, the rhythm of the earnings season is a bit of weakness at the start and volatility as financials report. With tech leading the way in recent years, the market tends to shake off and regain lost momentum as tech stocks start to deliver. Nvidia, Apple and Microsoft may still be the most important to follow. It remains a trader’s market!