{"id":548219,"date":"2022-07-31T04:00:54","date_gmt":"2022-07-31T04:00:54","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/07\/31\/bull-rally-or-bear-rally\/"},"modified":"2022-07-31T04:00:54","modified_gmt":"2022-07-31T04:00:54","slug":"bull-rally-or-bear-rally","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/07\/31\/bull-rally-or-bear-rally\/","title":{"rendered":"Bull rally or bear rally?"},"content":{"rendered":"

<\/a> After chaotic 1H 2022, tech earnings drive US stocks\u2019 best performance in years: <\/strong>US stocks saw their best month since 2020 in July with S&P 500 gaining 9.1% and the Nasdaq jumping 12.3% as financial markets rebounded on better-than-expected tech earnings<\/a> and ominous economic data that investors hope will force the Fed to ease off the interest rate hikes, the Financial Times<\/a> writes.<\/p>\n

Let\u2019s not get ahead of ourselves:<\/strong> Up until last month, US financial markets were having one of their worst years on record as rising inflation and the war in Ukraine sent stocks and bonds tumbling. The question now is whether the July rally was a genuine rebound or merely a pause in the bear market. \u201cEvery bear market has strong rallies within it,\u201d one strategist said. \u201cWe\u2019re in one of those tricky periods here where it\u2019s not clear if we\u2019ve seen the low, or if this is a rally within a larger bear market.\u201d<\/p>\n

European funds are pessimistic: <\/strong>European asset managers are bracing for more of the same in the second half of the year as the drivers of the 1H 2022 sell-off continue to impact the markets, according to Financial Times<\/a>. \u201cThe economic outlook is incredibly tough,\u201d said Schroders CEO Peter Harrison. \u201cThere are inflationary pressures that aren\u2019t going to abate quickly and a war in Ukraine which isn\u2019t going to end for a considerable while.\u201d<\/p>\n

The gap between big, diversified asset managers and more narrow-focused ones is growing:<\/strong> While the performance of equity markets prompted many clients to pull funds from asset managers in the first half of the year, the most diversified asset managers \u2014 like London-listed Schroders \u2014 still benefited from continued growth as they shifted their focus to fast-growing markets like wealth and pension funds. More narrow-focused asset managers, including the likes of Jupiter<\/a> and Janus Henderson<\/a>, however, saw assets under management fall and share prices plunge.<\/p>\n

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