torsdag den 24. oktober 2013

Stress Indicators being renamed: Complacency Indicators :-)

Overall comments:

 

The Stress Indicators may need to be renamed: "Complacency Indicators" – The market is sleeping – ignoring systemic, VaR risk, and valuation conservatism – this DOES NOT mean however we can't go higher first. The repricing of None-tapering is

Impacting yield curve which in my opinion drives absolutely everything…….. 

 

We have since 3.00% in 10 Y US yield called for return to 2.25% - (September 9th interview on Saxo TV: Why I'm moving to 80% in fixed income: http://www.tradingfloor.com/posts/jakobsen-moving-80-portfolio-bonds-1020127498)

 

We remain with that call and still see even lower rates when the economic reality hits home  - This is our projection from June 24th, 2013:

 

 

 

 

 

Headlines:

 

Comment: Drives EVERY asset in the world – nothing is excluded.

 

Comment: Considering the equity optismism it's a poor showing….

 

Comment: Up on stocks as market reprice FOMC is the easy trade, but market and prices elevated – still, though, "relatively" cheaper than in early May..

 

Comment: We note that Gasoline price is big part of "momentum change" in surveys (We value survey's value overall as ZERO – it's a questionnaire for Christ sake!)

 

 

Comment: EURUSD certainly not driven by relative rate spread – biggest spread in memory… something needs to give…..

 

Comment: Should support Gold toward our 1525 $ target end of Q4

 

 

Med venlig hilsen  |  Best regards
Steen Jakobsen  |  Chief Investment Officer

 

Saxo Bank A/S  |  Philip Heymans Allé 15  |  DK-2900 Hellerup
Phone: +45 39 77 40 00  |  Direct: +45 39 77 62 23  |  Mobile: +45 51 54 50 00

 

Research: http://www.tradingfloor.com/traders/steen-jakobsen

Please visit our website at www.saxobank.com

 

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