The Week Ahead: US analysts still bullish
WALL Street’s worst week in two years was enough to get investors worried about whether a long-overdue correction is coming, but analysts are still leaning bullish going into the new week.
The market is undoubtedly ripe for a correction – the current rally has continued for nearly three years without a decline of more than 10 per cent. The Fed looks closer to raising rates, and housing and car sales figures suggest those markets may be softening, if only temporarily.
“The summer has been just tough because there has been very little to buy,” said Kathleen Gaffney, portfolio manager of the Eaton Vance Bond Fund. “But I think what is happening is that we are seeing the markets adjusting from an environment of lower interest rates to higher interest rates – and that’s producing volatility.”