Unloved Assets Join Market Rally in Latest Sign of Optimism

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Unloved Assets Join Market Rally in Latest Sign of Optimism
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Investors are piling into global stocks, emerging markets and commodities, as a more-optimistic outlook on trade and growth fuels a renewed appetite for comparatively risky assets

By Ira Iosebashvili and Amrith Ramkumar Nov. 10, 2019 5:00 am ET Investors are piling into beaten-up assets from commodities to emerging-market stocks, powering a broad rally that reflects a brightening outlook for the global economy.

Coupled with a climb in U.S. shares that has pushed major indexes to fresh highs, the moves highlight investors’ sudden optimism after months of caution. Since the world’s two-largest economies agreed on initial steps toward a trade deal last month, emerging-market stocks and oil have each risen about 7%, followed closely by European shares. Oil and stock benchmarks for the U.S., Europe and emerging markets are on pace to all climb at least 10% in the same year for the first time since 2009.

Even within U.S. stocks, some investors are favoring so-called cyclical areas more tied to the economy that have become cheaper than fast-growing sectors like technology. The financial and industrial sectors have been the S&P 500’s best performers in the past month.

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