Is the FTSE rally running out of steam?

The stockmarket rally isn't the sign of a new bull market, it's a 'secondary reaction' in a primary bear market. And it could be running out of steam. Here's why.

It is said that "Too many cooks spoil the broth"; it is also said that "Many hands make light work". Which of these sayings is accurate and which is false? The answer is that at different times, in different circumstances, they are both correct.

It is also said that "Bull markets climb a wall of worry". Many investors use this maxim to sustain themselves against bad news, such is the mindset of those who believe the strong FTSE since March is a new bull market. However, if we are right in saying that this is not a new bull market but a secondary reaction in a primary bear market, what kind of wall has FTSE been climbing? The same "wall of worry", but the worries are real ones that will unhinge the rally and reset FTSE on its primary bear market path.

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