Asset allocations · Market outlooks

‘Equities are a lost cause. Don’t trust this rally.’

‘Equities are a lost cause. Don’t trust this rally’

While interest rates in the bond market are rising uninhibitedly, the stock market may be in a dead-cat bounce, or a "sucker-rally". Some market specialists do not trust the rally and declare equities "a lost cause". In terms of allocations, the traditional appeal of a 60-40 portfolio appears to make a comeback now that the ‘earnings yield spread’ between stocks and bonds is narrowing.

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