US and European equities - HSBC analysts warn of 'Reverse Goldilocks' environmentThis would have been better earlier in the week, but here goes ... Via HSBC, analysts there saying its now a 'Reverse Goldilocks' environment and time to get out of risk assets:
- the rally into year-end 2023 was 'Goldilocks', the Fed's dovish pivot in December amplified it
But now its time to reverse that, going with the momentum argument first:
"Markets typically trade the direction of travel / rate of change. And that's down and negative. - cut overweight on equities, decreased exposure to US and European assets to underweight from overweight
- wait for a better reentry point in terms of investor positioning and sentiment
This article was written by Eamonn Sheridan at www.forexlive.com.
Source: US and European equities - HSBC analysts warn of 'Reverse Goldilocks' environment (https://www.forexlive.com/news/us-and-european-equities-hsbc-analysts-warn-of-reverse-goldilocks-environment-20240103/)
forexlive.com