Chart of the Week12 Apr 2024
Stocks are running on fumes
The equity rally since the start of last year has been impressive. Especially considering that interest rates were rising, whilst corporate profitability was challenged. Nevertheless, investors – perhaps believing in an imminent easing of financial conditions - were willing to bid up equity multiples. Now we are seeing rate cuts delayed, while earnings could slow further (especially outside IT sector).
Would that be enough to de-rail the equity market?