- The market rally has stalled on diminished outlook for a Trump reflation and a surprising softening in US economic data.
- It’s understandable, given the length of the rally and the stretched valuations.
- But it’s difficult to see any clear catalyst propelling stocks higher in the near future, this is more a market for stock pickers and sector rotation.
- And there is actually a small, but non-negligible risk for a US recession.