Recent market rally may prove short-lived

The recent recovery in equity markets is most likely an example of a rally in a bear market rather than a sign of the market turning says Talaria Co-CIO Hugh Selby-Smith in the recent Investor Daily and Money Management articles.

Two key signals the Talaria investment team monitor have yet to indicate that a durable bottom in equity markets is imminent.

“The first is when leading economic indicators trough, allowing investors to anticipate a recovery in the economy and corporate earnings. However at this stage, there is no sign of this happening until at least the second half of 2023,” Hugh explained.

“The second signal is central banks changing to policies that support capital markets. But their first priority is controlling inflation so again, this seems some way off.

Investor Daily article

Money Management article