The ongoing rally in US stocks is drawing more and more bulls out.
JP Morgan are advising not to park funds in cash saying its prudent at present to avoid the ‘cash trap’ and step into risk markets (like stocks).
- UBS are more specific, saying to buy dips in large tech stocks, there are further gains ahead:
- There will likely be pullbacks and volatility over the next few months and we are supportive of the buy the dip mentality when it comes to big tech
- many big tech firms have strong balance sheets
- many big tech firms have earnings growth potential
- these can ride out interest rate rises
- and, expect broader gains this year: “While we expect a continued resilience in tech stocks, we also expect a less dramatic, albeit still heavy, focus on the Magnificent 7”
