Michael discusses how short covering, rather than real money, has driven the fastest recovery on record following a bear market, and looks ahead at slowing earnings growth.
Mounting losses may result in this being one of the worst Decembers on record, and one of the worst years for equity performance in a decade.
A brief note on the latest price action in equity markets, how business cycles end, and how markets are being left to fend for themselves without central bank intervention for the first time in 20 years.
Market excitement about a resolution to the long-running U.S.-China trade dispute built ahead of (what were rumored to be) the final round of negotiations this week. However, comments from President Trump May 5 helped to dash that optimism.
The key, is to focus on high conviction ideas that are supported by structural tailwinds. However, many of these investments are tied to the technology sector.
Learn about the important topics covered in the Outlook and their potential impact on broader markets. Michael Cembalest touches on topics including: the global banking system, oil markets, the credit risk of US states and credit market liquidity.
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For the first time in 20 years, markets will have to survive without support from central banks.