Q&A

The Economic Times - - Money -

In a chat with ET Now, Chris Roberts, MD, Asia­nomics, says the mar­ket is still act­ing as it has been now for the past year or so since it bot­tomed in Fe­bru­ary 2016. Edited ex­cerpts:

What do you make of this global rally in mar­kets? Do you see this rally has any strength and it can see a fol­low-through this en­tire week? On a day-to-day or week-to-week ba­sis, it is not a key thing. The key thing is the po­si­tion that the in­dices are in at this mo­ment. The S&P500, which is a proxy for Amer­ica, is ex­pected to rise to 2,500 to 2,700. We had new highs in most of the se­nior Amer­i­can in­dices as well as most of the mid­cap in­dices. The bull mar­ket is clearly in­tact and if the lead mar­ket is in­tact, then the pe­riph­eral mar­kets, emerg­ing mar­kets will have a chance to keep per­form­ing. Eq­uity wise, the mar­ket is in good shape.

In the Trump regime, there has hardly been any de­ci­sion which would boost the eco­nomic growth. Right now, it is all about pos­tur­ing and pol­i­tics. Noth­ing large so far has come in the first 15 days of the Trump ad­min­is­tra­tion which could in­di­cate that he is com­mit­ted to jump­start the Amer­i­can econ­omy... My work is purely based on his­tory, sen­ti­ment and price ac­tion and our view is that events and peo­ple find it very hard to dis­rupt or end a trend. So, it re­ally was not a ma­jor event for us around the Pres­i­dent Trump is­sue which a lot of peo­ple are con­cerned about. But what was very in­trigu­ing at the time was sim­ply the price ac­tion of the mar­ket.

If you re­mem­ber, when on the elec­tion night it looked like he was go­ing to be elected, the mar­kets ini­tially sold off, but

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