This past Friday the market finally broke from momentum after a strong surge in risk appetite through much of the week. However,this stall cannot be called a reversal, at least not yet. When we have analyzed the overall sentiment in the market, it has been found by us that the benchmark Dow is just off 10-month highs, for the current a new low has been set up by dollar and we can see that money-market funds are at their lowest levels since late October of last year .
Still all of the above mentioned signs are pointing towards a healthy appetite for yield with relatively little concern for market disruptions. However, when compared to the fresh highs these assets reach with each week the fundamental quality of this rally looks more and more bleak . A question may arise that how far can this divergence extend? Now that depends on how stable risk appetite is?
