Advertisement
So says Morgan Stanley’s excellent Michael Wilson.
Tactical Rally Reaches Our Targets
Last week, the tactical rally took another step forward on Wednesday after Chair Powell’s speech at the Brookings Institution. After the comments and interview, the back end of the Treasury markethad a significant outside reversal day,ending the session down -14bps. This sparked a similar reversal in equities led by the most interest rate sensitive and most shorted stocks in the market. This fits nicely with the lastupdate on the tactical rally we provided in our Weekly Warm-up from November 21st in which we stated:
Advertisement
The full text of this article is available to MacroBusiness subscribers
Cancel at any time through our billing provider, Stripe
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
Advertisement