Stock markets have bounced back over recent weeks to recapture at least some of the value lost since the bear market took hold. But one analyst told CNBC that stocks may have become divorced from reality.
Stocks Need a Reality Check
“I think we’re going down a little, the reason is we need a reality check on the big movement we have seen in the markets since March,” Morten Kongshaug, chief strategist from Danske Bank, told CNBC.
“We need more data on the macro side to confirm that we are on the right track,” Kongshaug said.
“The fundamentals have to play a role,” he added.
Overweight on Stocks
Salman Haider, MD & head of wealth management at Citibank Singapore, says it makes sense to have a portfolio that is overweight on equities, simply from a valuation perspective.
Gold Needs to Shine
Gold needs to break through the $930 level first in order for investors to snap it up, suggests Jonathan Barratt, managing director of Commodity Broking Services.
Dollar's Impact on Carry Trade
The dollar is the funding currency for the carry trade now, not the yen, says Michael Woolfolk, senior currency strategist at the Bank of New York Mellon, speaking to CNBC.
Absolute Yields Need to Fall
The U.S. government needs to drive absolute yields lower in order to sustain a long-term recovery, says Quentin Fitzsimmons, head of government bonds at Threadneedle.
What's Driving the Yen?
Despite the recent slew of weak economic data emerging from Japan, the yen has been gaining. Magnus Prim, chief Asia strategist at SEB, assesses what is driving the yen's strength.