Staying power of riskier stocks that are leading the rise is in question
By Dan Jamieson
The market's recent rally is likely to be short-lived.
Since the closing low on March 9, the markets have been led higher by lower-quality stocks and riskier asset classes, such as financial stocks and emerging-market equities.
“I don't think the rally can continue forever on the basis of low quality,” said Robert Doll, the global chief investment officer of equities at BlackRock Inc. of New York.
Market watchers say that it is typical for sectors that sold off the most during a downturn to bounce back the strongest during an initial rebound.
But a new, long-term secular bull market would most likely require new leadership from more attractive industries, market observers said.
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Ruin-Nation
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