Premium'Pricing Goldilocks With No Margin For Error': Deutsche Bank Is Watching These 6 Market Dislocations
This summer has seen one of the strongest market performances in recent years, with investors pricing in a very benign set of conditions:
First, equities and risk assets are buoyant, based on the premise of resilient and even accelerating growth.
Second, rates markets are pricing that central banks are nearly done with hikes, with only one or two more priced from the likes of the Fed and ECB.
Third, we have commodity markets pricing that supply shocks will prove contained, with Brent crude well beneath its recent peaks, and the oil futures curve still downward-sloping on hopes for a reopening of the Strait of Hormuz.