Key points from a note from the strategist Marko Kolanovic on Wednesday comes via Bloomberg.
- oil can leap to $130 or $150 without causing much trouble
- fears of higher yields are overdone ... Given the earnings power of corporate America and the relative valuation premium of equities over bonds, the strategists believe the market can absorb 10-year Treasury yields as high as 2.5%
- "We don't expect a broad market selloff unless yields were to rise above 250-300 bps (US 10y), which we don't foresee in the near term"
On the virus, also optimistic:
- "We believe that this was the last significant wave, and an effective end to the pandemic"
Here is the link to the Bloomberg piece for a little more (may be gated) .
Oil, CL:
