AMP chief economist and head of investment strategy Sean Oliver said investors
are still gauging the market impact of a Democratic win in the midterm elections
and outcomes remain unclear. Recent volatility reflects mounting concern that
tech and AI-related positions are overvalued, leaving them more vulnerable to
shocks. Those valuation pressures have been building and the midterms may merely
have been the trigger for a pullback. Oliver cautioned it is too early to call a
market bottom; if the economic outlook is unchanged, the fall is likelier to be
a correction than the start of a bear market.
