Bull against bear

Financial markets, macro economics, politics and everything else concerning the global markets. The writer is a long time investment banking operative in the nordic markets. The blog is usually updated once a week with specific trading advice. On a monthly basis, the goal is to provide a strategy update. In addition to that, there will be posts of more general content, housing bubbles, investment strategies and more.

October 1, 2012

Weekly update 1/10

JPMorgan adds a very good reason to be long today, which rhymes with my yearly outlook for very limited movements, or at least max/min movements in the market over the year. The reason is that even if growth potential is lower, the central bank puts around the world also means lower uncertainty and we can already see that with lower gdp volatility, as the graph shows, is on a 40 year low (at least). This implies a lower risk premia in equities vs safe assets and consequently higher equity prices. Stay long this week.

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