VTI - Global Equities Due For A Pause Spotting Pullback Opportunities In VT

2024-02-21 01:27:28 ET

Summary

• The global growth outlook for 2024 is positive, which is bullish for global equities, but rising interest rates and a strong dollar are key macro risks.
• The valuation gap between US and ex-US stocks is widening, making ex-US stocks more attractive for long-term investors.
• VT ETF has strong momentum but may face a retreat due to technical overbought conditions and bearish seasonality.
• I highlight key price levels as we move through a tough calendar period.

The global growth outlook for 2024 is looking a bit better. S&P Global and the IMF concur with a recent update from economists at Goldman Sachs for stronger inflation-adjusted expansion over the coming 10-plus months. All else equal, that is bullish for global equities, but right now, many investors' eyes are glued to rate-cut expectations. Should we see a growth acceleration around the world, then tighter monetary policy central banks could cast a cloud over both foreign and domestic equities. ...

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