Rudi's View: In Corporate Earnings We Must Trust

By Rudi Filapek-Vandyck, Editor. Is it possible general worries are simply too negative as equities continue their ascent?

Last year, the buzz around equity markets was about expensive valuations, narrow market breadth, and concerns about AI momentum having rallied too quickly too far.

Despite a few stumbles, including a weak start into the new calendar year, equities kept trending upwards until the shock announcement on tariffs from the new administration in the White House sent markets into a brief sell-off.

Strong price action post that April sell-off suggests that markets may not have sold off without the threat of unprecedented US import tariffs.

One year later, the ASX200 is more than 12% higher, including dividends, while US markets have performed even better.

We don't know, of course, as we cannot simply run an alternative history from which we can judge

Author's summary: Equities continue to ascend despite general worries.

FNArena — 2025-10-22

Rudi's View: In Corporate Earnings We Must Trust

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