- Markets have rallied on the back of strong earnings, good macroeconomic data, and bullish sentiment.
- But it’s easy to get swept up in blind optimism, and investors need to proceed with caution.
- Goldman Sachs compiled the 22 best investing ideas from its US analysts, regardless of sector.
Investors have cheered lower inflation, signals that the Federal Reserve will end its rate hiking cycle, and data that indicates the US might just avoid a recession after all.
With this influx of good news has come a wave of investor optimism, and strong sentiment has pushed the S&P 500 higher than many analysts were expecting it to go this year. But the strength of the stock market rally could potentially be its own undoing, as valuations outpace reality and investors might drag the market back down to earth.
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