Corporate Grapevine     

Published: April 30, 2025
Updated: April 30, 2025

Market bounteous, analysts cautious

The recent rebound in the stock market appears to reflect a combination of com placency and optimism regarding global growth and domestic earnings. In the view of analysts, this optimism may be prema ture, given the substantial uncertainty that remains around key issues such as global economic growth, tariff and trade negotia tions, and the direction of the US dollar.

While market levels have surpassed those seen on ‘Liberation Day’, implying that concerns have been fully resolved, the underlying reality suggests otherwise as global and domestic GDP growth are likely to slow, and reciprocal tariff and trade disputes are far from settled and will take considerable time to resolve,

Corporate earnings have been revised downward yet again, and valuations remain elevated across sectors and indi vidual companies. Analysts believe these factors warrant a more cautious approach despite the recent market strength. So they advise caution ahead.