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