Kolanovic, JPMorgan See ‘Ominous Signs’
"Ominous signs." Marko Kolanovic sees them.
It's been a long 18 months for bears. I'd say they're going extinct (and if you proxy their numbers by short interest on benchmark equity ETFs they are), but the irony of the current rally is that stocks are rising so inexorably that last month's bullish calls are this month's bear cases.
That's just barely an exaggeration. Even after the most recent round of price target hikes on Wall Street (which included a third increase from Goldman's David Kost
I am not really bullish. That said a rotation out of tech and into other sectors taking place recently is a good sign, even if it drives the overall s&p 500 and nasdaq 100 indexes down. It shows there is not a wholesale retreat out of equities just a rebalancing. If you saw a rotation out of the entire stock market that is a horse of a different color.
A Trump Presidency is the wild card
I’d be wary of trying to read too much into the price action during the very last days of a quarter.
High valuations and narrowing leadership leads to markets swoons – I wish the truth of this was really known. The folks quoted in the article believe its true but a recent piece by Savita Subramanian suggests otherwise