S&P 500

‘The Party Is Still Going’: Why One Bank Sees 2,900 For The S&P By Year-End

I'm not sure it qualifies as a "bold" call, but it is "a" call.

I'm not sure it qualifies as a "bold" call, but it is "a" call.
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1 comment on “‘The Party Is Still Going’: Why One Bank Sees 2,900 For The S&P By Year-End

  1. Well as a bond and equity investor who has always preferred a higher bond allocation, I would shift over a large allocation to bonds at 10 year treasury @ 4%. This would put baa 10 year corporates at close to 5.5 – 6% (assuming same compressed spreads, which might actually widen). This would offer some stiff competition to historical long term equity yields.

    The crossover threshold is much lower than 10 years ago, before the interest rate drought. Interest rate sensitivity increases the longer a drought lasts. I think in general this is true for many fixed income investors.

    Unfortunately, A 10:year treasury at 4% won’t be happening any time soon……:(

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