Reported 15 days ago
Following the Federal Reserve's unexpected rate cut, the stock market experienced a rally; however, experts caution that this could lead to increased risk-taking and a future sell-off. According to Nomura's Charlie McElligott, the shift in market sentiment from recession fears to soft-landing hopes may be driving investors back into riskier positions. This change has prompted forced re-risking, signaling potential vulnerabilities as both individual and institutional investors hedge against downside risks amid rising volatility and uncertainty about future economic conditions.
Source: YAHOO