الثلاثاء, 22 تشرين1/أكتوير 2019 09:19

Stop Playing Defense in Equities

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(New York)

Investors have been playing defense in stocks for months. Everyone has been very spooked by economic data and the trade war, which has caused a rotation into defensive sectors. However, a top manager at Fidelity, Denise Chisholm, is saying the opposite: it is time to play offense. Her core argument is that real interest rates in the US are negative--which happened after the Crisis and also in the 1970s and 1980s—which is highly bullish for the stock market. Further, the ECB and Fed are cutting at the same time, a quite rare occurrence, and one that has always led to an equity market rally.


FINSUM: This is an interesting contrarian argument. We particularly like the ECB + Fed narrative.

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