There are three key periods of the current stock market rally, Graham Neilson, chief investment strategist, Cairn Capital, told CNBC Wednesday.
The rally since the start of the year has been driven by a return to risk assets, as markets absorbed the impact of monetary easing by the European Central Bank . Major indices including the S&P 500 and the FTSE 100 have risen, but analysts are divided on whether the rally will continue, and how it will progress.
“There are three phases to go through,” Neilson said.
He described the first as a “technical rally” from an oversold position.