Vinit Sambre highlights risks to earnings growth from weak consumption trends and potential reduced government spending, impacting the market. Retail liquidity drives smallcaps rally, with investors optimistic about sustained growth amid election sentiments and FOMO. Sambre says: "Any potential downward revisions in earnings forecasts could pose a risk of corrections in the market over the next 2-3 quarters."
The market sentiment is bullish but valuations are high. Why fight against a trend, while staying bullish, just add an element of caution. When we use the word caution, we mean stay with quality and especially if one is increasing exposure in midcap at this point of time. There is enough evidence to show that owning quality stocks pays both in bullish and bearish markets conditions. In a bullish market, they tend to rise faster and when a bearish phase comes, they do lose weight like others but less as compared and have shown tendency to recover fast post a bearish phase. so stay bullish but be selective. But how to be selective, right from whether the company pays dividend to how it is debt situation, whether promoters have reduced the stake or not if yes than why, these are additional aspects to look at besides looking at the matrix of ratios.
Lineup includes one Buffered product and four Fixed Income products in AB s ETF suite
NASHVILLE, Tenn., Dec. 13, 2023 /PRNewswire/ AllianceBernstein Holding L.P. and AllianceBernstein L.P., a.
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