Why One Bank Is Still Bullish On Stocks (And Bearish On The Long End)

Why One Bank Is Still Bullish On Stocks (And Bearish On The Long End)

A tug-of-war is developing between two competing narratives on US Treasurys. On one side are those who, like Bloomberg's Mark Cudmore, believe that the Fed's messaging on Wednesday conveyed a cautious outlook on the economy thus telegraphing "much more to come" in terms of falling yields and USD weakness. On the other side are those who are sticking with the reflation story and hanging on to the idea that dissipating political risk following an assumed loss for Marine Le Pen in the French elec
Subscribe or log in to read the rest of this content.

One thought on “Why One Bank Is Still Bullish On Stocks (And Bearish On The Long End)

  1. H:
    Life is a bit more simple out here on the farm in Eastern Oregon.
    1. Federal hiring freeze-loss of jobs;
    2. Cuts to various agencies in proposed budget-loss of jobs;
    3. Proposed cuts to the ACA-loss of jobs;
    I suppose a person could respond that there will be a massive infrastructure bill. I would imagine it just as likely that the next two or three months will be the peak in employment during this cycle. Rates might move up a little more; but by this time next year, could be moving back down. I just don’t see inflation creeping into either commodities nor wages.

    On the hand, I continue to plant wheat knowing the return isn’t there at this time. So, what do I know. It becomes a habit.

    W

Speak your mind

This site uses Akismet to reduce spam. Learn how your comment data is processed.