by Al_Dente » Thu Feb 01, 2018 4:28 pm
JPM’s “Gandalf” is back:
“… we think that the …[recent market selloff]… was not large enough to trigger broad deleveraging. Equity price momentum is positive and trend followers are not likely to reduce equity exposure...”
After quite recently saying that 2.75% in the 10yr Yield, he now says “…We believe one should not look at a specific level of bond yields in isolation from the level of economic activity and positive catalysts such as fiscal easing. We think that the current level of rates do not yet pose a major risk for equity multiples.”
"In terms of timing market downside risk, we would be more concerned about the period after the Q1 earnings season, when fiscal reforms are likely to be priced in and central banks make further progress on the normalization of monetary policy."