It's official - in addition to the S&P, complacency and optimism have just hit all time highs, as absolutely nothing can ever go wrong again thanks exclusively to the stream of central bank liquidity which is rising all sinking boats. Strategas explains:
- Investors around the globe “left our team warmly wrapped in the blanket of near-universal optimism” during recent client visits in Europe, Asia, Latin America, say Strategas global asset allocation analysts Nicholas Bohnsack, Ryan Grabinski in note.
- That optimism itself could be a risk
- Investors do not see any “lurking macro squall,” they’re optimistic on near-term growth and equities generally; U.S. stocks are favored
- Investor optimism driven by threshold for Fed tapering “higher and likely delayed relative to expectations"
- China won’t have hard landing; Europe recovering; inflation moderating as oil falls
And so all is well. Indeed, why worry? Uncle Janet has your back now and forever. As for the equity bubble that everyone now admits is clear and present, who cares...
Source: Bloomberg