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?
Last year, equity markets were concerned about expensive valuations, narrow market breadth, and AI momentum having rallied too quickly too far. Despite some stumbles, including a weak start to the new calendar year, equities kept trending upwards until the shock announcement on tariffs from the White House sent markets into a brief sell-off.
Would markets have sold off without the threat of US import tariffs? The answer is unknown, but strong price action post-sell-off suggests otherwise.
One year later, the ASX200 is over 12% higher, including dividends, while US markets have performed even better.
No alternative history can be run to judge the outcome without the tariffs threat.
Author's summary: Equities continue to trend upwards despite general worries.