Sentiment positive as inflation picks up

INFLATION is coming, but instead of being scared of the "not too hot, not too cold" narrative of 2017 ending, market sentiment remains positive.

We can see this in how global markets ended last week with a rebound from the previous week's correction.

Oil is recovering somewhat. After hitting US$70 a barrel towards the end of January, Brent oil prices found a temporary bottom at US$62 and was last trading near US$65.

"The fear of missing out dominated the behaviour of investors who had waited out the recent selloff to 'buy the dip'," said Citi. "Price action . . . is consistent with our base case view that the ongoing business cycle expansion encourages portfolio rebalancing out of …