‘Rather Than Catching A Falling Knife’: One Bank Says It’s Not Yet Time To Buy
"Bond yields are unlikely to spark a new risk-off, and our baseline is for an eventual drift up in risky assets", Barclays writes, in a note dated Monday.
That's the good news. The bad news is ... well ... the bad news is that there's a lot of bad news.
"There has been a steady drip of bad news from the rest of the world, including growth disappointments in Europe and China, the Italian budget trade-off, and the lack of a Brexit agreement", the bank goes on to lament, in the very next sentenc
Maybe metrics are finally revealing a bigger truth: Under the current wealth distribution globally, deflation is a secular force TRUMPING QE.
The long end still has a way to run. With $425 billion going up for sale this quarter and the Fed letting $30 billion run off the balance sheet that is lot of supply.
A link popped up on the otherwise annoying obligatory advertising which seems particularly timely – especially the portion about anticipating choices and course of unwinds as we are now experiencing. The outlined choices have not changed in the past year, and this appraisal seems only more salient as it is reviewed with benefit of incorporating this past years events into current moment. It is worth re-reading and recycling into current dialogue. Thanks H.
https://heisenbergreport.com/2017/11/11/the-spiral-history-repeats-itself-and-the-price-is-higher-each-time/