Nomura Warns "Get Back Into Cash"; Higher Volatility Looms After Rate-Repricing

Nomura's Charlie McElligott notes that the market has rightfully “trued-up” Fed terminal rate expectations in-line with spectacularly resilient growth data both domestically and internationally, following the FOMC’s multi-month “premature FCI easing” blunder which allowed for a reacceleration of “animal spirits” across inflation-, retail / consumption-,  labor- and even survey- / “soft-” (particularly within Services sector) data, pouring gasoline on a still too robust economy, relative to their purported inflation-fighting aspirations.

Source: Bloomberg