{"id":1633,"date":"2025-04-28T12:00:53","date_gmt":"2025-04-28T12:00:53","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/trivestwealthcounsel\/?p=1633"},"modified":"2025-07-04T16:17:48","modified_gmt":"2025-07-04T16:17:48","slug":"https-financialpost-com-investing-chasing-yesterdays-winners-markets-rally","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/trivestwealthcounsel\/https-financialpost-com-investing-chasing-yesterdays-winners-markets-rally\/","title":{"rendered":"Rather than chasing yesterday\u2019s winners when markets rally, consider this"},"content":{"rendered":"

Martin Pelletier: In uncertain times, portfolios built on quality, balance, and adaptability will be best positioned to weather the storm<\/p><\/blockquote>\n

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As the\u00a0U.S. equity market<\/a>\u00a0continues to exhibit tremendous\u00a0volatility<\/a>, investor nerves are increasingly frayed. The persistent sell-off and repeated failure of the market to find a solid bottom are raising legitimate concerns about whether further downside risk lies ahead. Each failed rally breeds more uncertainty, contributing to a cycle of hesitation and caution among portfolio managers and retail investors alike.<\/p>\n

A notable technical development adding to this unease is the recent emergence of the so-called \u201cdeath cross\u201d across a swath of major indices and leading U.S. companies. This pattern, where the 50-day moving average crosses below the 200-day moving average, has manifested in the S&P 500 and Russell 2000, and prominent stocks including Nvidia Corp., Tesla Inc., The Walt Disney Co., Bank of America Corp., and Delta Air Lines Inc. Historically, the death cross has been viewed as a bearish signal, often preceding periods of continued weakness.<\/p>\n

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However, while this pattern can indicate a shift toward a longer-term downtrend, it is not always conclusive. The current macroeconomic environment is layered with variables that could still provide upside catalysts. Notably, any resolution or favourable shift in trade dynamics, particularly relating to U.S. President\u00a0Donald Trump<\/a>\u2019s\u00a0tariffs<\/a>, could prompt a reassessment of risk sentiment and offer relief to markets.<\/p>\n<\/div>\n<\/section>\n

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Adding to the mixed picture is the Relative Strength Index (RSI), which now shows oversold conditions across many equities. While this has historically been a precursor to potential rebounds, it is not a guarantee. In fact, markets in oversold territory can remain that way longer than expected, especially when accompanied by broader macro concerns or technical deterioration.<\/p>\n

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Historical market episodes offer valuable context.<\/p>\n<\/div>\n<\/section>\n

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