This bear correction has been overdone, many stocks are trading at very low multiples. Investors are pricing in negative growth which is not the case at all. There was still 13k addition of jobs in June which still shows optimism in this time.
Summer time, there would be more job additions based on historical trends. While we are still unsure what to make of the market, a relief rally is coming as we close in to Q2 earnings release. Q2 earnings should be much better than Q1 given the improvement in the global economy. While many keep thinking growth has been somewhat thwarted, just look back at the past 3 months and you will notice that the economy is growing steadily.
Let’s see the unemployment figures later. Everyone hopes that the unemployment figures can drop to 430k and then to the historical norm of 350k.
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