Why We Would Not Be Surprised to See a Consolidation in Equity Markets in the Short Run
In this month's market strategy video, Florent Bronès discusses the current solid and synchronous economic growth, the dollar weakness and the rally in the equity markets.
So fundamentals are positive and we stick to the positive view and opinion concerning equity markets in the future. However in the short run, we would not be surprised to see a consolidation in equity markets. The main indices are up 15-25% and we think they need some time for a consolidation before the mature indices come back towards their 200-day moving average. It will take time, but this consolidation will be an improvement from the overbought territory where we are today. In the longer term, we stick to this positive view on equity markets, especially for the eurozone equity markets and the Japanese markets which are sensitive to the global economic recovery seen currently.