Diversification strategy solves investment dilemma
For all the high valuations and macro risks, investors seem generally optimistic, or at least feel the need to stay in the market
AFTER US President Donald Trump’s threat to raise tariffs on Chinese imports in response to China’s new export restrictions on rare earth metals, the US stock market briefly wobbled before quickly recovering its losses.
This development highlights the dilemma facing investors: On the one hand, multiple valuation indicators suggest the stock market is near a high point, warranting a defensive stance. On the other hand, US economic fundamentals remain strong, with solid corporate earnings suggesting further upward momentum.
Solid fundamentals despite high valuations
The once-feared global recession has not…
