Darius joined Charles Payne earlier this week on Making Money to discuss where markets are likely headed.
If you missed the interview, here is the most important takeaway to help you navigate upcoming trends in asset markets:
Over The Next Few Months, We Believe The Stock Market Will Continue to Rally, And Dips Will Be Shallow.
- Asset markets recently transitioned to a Goldilocks regime, where stocks typically perform well. As a result, we believe the path of least resistance in stocks is higher over the next couple of months.
- Investor positioning remains light going into year-end, as many investors are under-exposed to equities. We believe any dips are likely to be shallow as many investors are forced to chase positive performance.
- The AAII Investor Sentiment Survey shows the % Bull-Bear spread, a metric that represents the difference between the percentage of investors who are bullish and those who are bearish. It moved from an extremely bearish reading in the 4th percentile to an extremely bullish reading in the 91st percentile, the largest four-week move in history. This does not indicate that the bull market has peaked; rather, we believe it suggests a continuation of the recent consolidation over the near term.
That’s a wrap!
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