For now though, the equity advances worldwide are clearly looking stretched despite the fact that “no one appears to have participated in the rally,” according to strategists at Barclays Plc.
Unlike the early-2018 gains, which were supported by strong inflows, they argue the bulk of this advance was probably spurred by short covering. Barclays clients are in “sell the rally” mode, strategists including Emmanuel Cau wrote last week.
“Fundamental investors need to see good news again before adding back to equities,” they said.
This article provided by Bloomberg News.