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With markets cooling off, US politics and COVID‑19 developments come into spotlight

In September equity markets finally took a pause to ongoing rally, with majority of global equity indices falling in price during first month of autumn. Last time we mentioned that certain equities were rising inadequately high and fast in August, reminding us of patterns observed during speculative mania. Therefore, it was not really a surprise when these stocks experienced strong reversal in the matter of days with declines from peak to trough reaching 20% to 35% depending on the particular stock selected.

Upside momentum continues, but optimism might be way too high

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