Stock investors look bullish, but US government bonds, gold and oil tell a less encouraging storyreports Lisa Shalett, Morgan Stanley’s Director of Wealth Management Investments.
Stock Gains Just Another Bear Market Bounce
“The recent gains in stocks are just another bear market rebound, not the start of a sustainable bull market. The current recovery appears to be based not on improving economic fundamentals, but on easing financial conditions, which we believe are likely to reverse later this year..”
“Although stock markets are trading higher, recent developments in markets for other asset classes offer a completely different picture.
- US Government Bonds: Treasury yield curves remain sharply inverted, a sure sign that an economic downturn is on the way.
- Gold: Since the October low of the S&P 500, gold continues to outperform the S&P 500 and the Nasdaq.
- Petroleum: If stock investors expect a “soft landing” and a possible rebound in economic growth later in 2023, oil prices are not reflecting it.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
