Saturday , 18 January 2025
Home Forex Barclays’ 3 reasons to keep buying US stocks
Forex

Barclays’ 3 reasons to keep buying US stocks

Barclays continues to favour US equities, citing three tailwinds for stocks ahead:

First, much of the increase in valuations is earnings driven.

  • Even as NVDA has pole-vaulted to become a $2trn-plus company, its P/E multiple to forward earnings has come down sharply.
  • Earnings have not only justified bullish consensus forecasts, but have exceeded them in recent quarters. The same is true collectively of Big Tech; most of the equity rally is based on better earnings, not multiple expansion, especially after last week’s wobble in markets.

Second is the macro outlook

  • We expect the U.S. jobless rate to peak at just 4% and without net job losses this entire business cycle. If this is as bad as it gets, it is a very benign trough, especially when an easing cycle is not very far away.

Three, when U.S. equities hit a record high, it is very rare for them to pull back for the rest of the year;

  • the factors that drove the rally usually keep going. Further, there are sectors and geographies where the upside is yet to play out fully.”

A down day today, but buy the dip has been the catchphrase for a long time now:

This article was written by Eamonn Sheridan at www.forexlive.com.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Trend Continuation Factor and Hurst Exponent Forex Trading Strategy

The Trend Continuation Factor and Hurst Exponent Forex trading strategy is a...

Forexlive Americas FX news wrap 17 Jan: US Supreme Court affirms decision to shut TikTok.

US stock indice close higher on the day and have positive returns...

US stock indice close higher on the day and have positive returns for the week

The major US stock indices are closing higher for the day and...

FX Weekly Recap: January 13 – 17, 2025

The market spotlight was mainly on U.S. inflation data that prompted traders...