A major flaw in the analytical framework if you ask me.
From Bloomberg:
Wall Street Is Mapping Stock Trades for a Post-Bond Bubble World
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It may be time to pare down high-momentum stocks, ISI says
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BofA’s Subramanian says look for companies with yield growth
Alan Greenspan says don’t kid yourself, if the bond market blows up the collateral damage to equities could be extensive. But does that mean you need to bail from the market completely?
Blueprints are starting to surface from Wall Street’s brightest minds on how to manage a portfolio should the Federal Reserve withdraw more stimulus and interest rates rise. It’s an issue that was brought to the fore this week when the former Fed chairman warned that fixed-income markets are in a bubble whose deflation will have implications for all assets.
To be sure, the larger part of professional investment opinion is that people should stay in equities. The average projection of 20 strategists tracked by Bloomberg calls for the S&P 500 Index to finish 2017 at 2,488, compared with an average estimate of 2,362 in January and Friday’s 2,472.10 close. But that hasn’t kept thoughts from turning to exit strategies.
Here’s a sampling culled from recent pronouncements from some of the biggest influencers.
Nikolaos Panigirtzoglo, JPMorgan Chase & Co.
Panigirtzoglo, a strategist who advises clients on global asset allocations, says Aug. 21 and 24, 2015, are dates that loom large among investors, a stretch in which concern about quantitative tightening from China sent the S&P 500 to a peak-to-trough swoon of 8 percent. It’s one reason open interest in calls on the CBOE Volatility Index -- a bearish equities trade -- recently outnumbered puts by 4-to-1....MORE
