Why investors shouldn’t get carried away with the sharemarket rebound
Equities are likely to test fresh lows in the next few months, prompting some strategists to reduce risk in their portfolios by rotating into defensive stocks.
Leading equity strategists are warning investors to brace for more volatility in 2023 as the aggressive tightening by central banks hits economic growth and corporate earnings, which is likely to drag sharemarkets to fresh lows.
While equities have rebounded over the past two months on renewed optimism about a slowdown in the pace of interest rate rises, strategists are sceptical about the sustainability of the rally heading into the new year.
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