There are 3 phases of the market.
The first is liquidity-driven, like what we saw in 2009 when the financial crisis was ending.
The second stage is when markets move into a fundamentals-driven phase, when investors pay attention to things such as economic data and earnings That's the stage we are at now.
The third and last stage is basically a performance-broadening phase. Here, underperformers start to get traction and catch up. This next move will likely see investors rotating from their favourite developed markets to emerging markets including China.
(Quoted from Benjamin Yeo, CIO, Barclays Singapore)
