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Marko Kolanovic’s Warning: Equity Factor Bubble Now Twice As Large As Dot-Com Era
Late last year, JPMorgan's Marko Kolanovic called for a continuation of an unwind in what is, quite clearly, a bubble in bond proxies and various other equity expressions associated with the vaunted "duration infatuation".
The market's love affair with bonds went into hyperdrive last August amid a recession scare (exacerbated by convexity flows) tied to new tariffs. In early September, yields snapped back higher in dramatic fashion, causing multi-standard deviation unwinds across factors. “[T
Value stocks on the other side of the trend…? So now is the time to move to value stocks?
Supposedly for a trade. “Value” stocks need a stronger economy and are they truly value? Relative value sure but absolute value? In this market very few stocks appear to be below intrinsic value in my analysis.
Marks could be using Utes in place of AAPL for the most part. Amazing………..
Yeah, everything worth having is overpriced. But there’s too much money flowing everywhere for shit to roll over. That’s also why the only strategy that makes money is buy the dip
Of course both Kolanovic and Marks are correct. Everyone knows that. Problem is, the perpetual motion machine may stop, but it may not for a long, long time.