Rudi's View: In Corporate Earnings We Must Trust
By Rudi Filapek-Vandyck, Editor
Is it possible general worries are simply too negative as equities continue their ascent? This time last year the buzz around equity markets was all about expensive valuations, a narrow market breadth and concerns about AI momentum having rallied too quickly too far.
There were a few stumbles here and there, including a weak start into the new calendar year, but equities kept on trending upwards until that shock announcement on tariffs from the new administration in the White House sent markets into a brief sell-off.
Would markets have sold off without the threat of unprecedented US import tariffs? We don't know, of course, as we cannot simply run an alternative history from which we can judge, but if strong price action post that April sell-off is anything to go by, I think the answer is negative.
So here we are again, one year later and the ASX200 is more than 12% higher, including dividends, while US markets have performed even better.
Author's summary: Equities continue to rise despite negative worries.
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