Gamma, Greed, & Liquidity: BTFD Or STFR?

Authored by Simon White, Bloomberg macro strategist,

A rise in Federal Reserve liquidity and the activation of several tactical buy signals suggest a short-term reprieve for US stocks. But there are also clear reasons to argue that this is now a market to rent, not own.

There is something for everyone in today’s stock market. Short-term excess pessimism and a bounce in prices; a slowing economy that could take the market much lower if it becomes recessionary; and stretched valuations that mean long-term returns are set to be poor.