This would have been better earlier in the week, but here goes ... Via HSBC, analysts there saying its now a ‘Reverse Goldilocks’ environment and time to get out of risk assets:
- the rally into year-end 2023 was 'Goldilocks', the Fed’s dovish pivot in December amplified it
But now its time to reverse that, going with the momentum argument first:
- “Markets typically trade the direction of travel / rate of change. And that’s down and negative.
- cut overweight on equities, decreased exposure to US and European assets to underweight from overweight
- wait for a better reentry point in terms of investor positioning and sentiment
