Part 8/11:
Currently, inflation remains under control, allowing the market to sustain its rally. However, if inflation unexpectedly rebounds, tightening monetary policy could trigger a swift reversal.
The Outlook: Is a Bubble Brewing?
While current conditions suggest the market might be ripe for a correction, the fundamental driver behind this persistent rise is the optimistic earnings outlook. As long as these expectations hold and inflation remains subdued, the rally could continue. Yet, risk factors remain—in particular, a potential shift in inflation dynamics.