Why equities are going higher

Equities have started the year on a high, and despite growing concerns about the state of the global economy they could continue to move higher, argues Max King.

Gold models of a bull and a bear
(Image credit: © Getty images)

There is an old adage in investment that you should buy a share or market whose price rises on bad news. The logic is that the price action shows that the bad news was fully or over-discounted so the outlook has improved.

Storm central for the bear market in 2022 was growth, especially technology stocks and Nasdaq-listed equities. But, with Nasdaq up 16% so far this year, against less than 9% for the S&P 500, this is where the best gains have been seen.

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Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.