US and European equities - HSBC analysts warn of 'Reverse Goldilocks' environment

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US and European equities - HSBC analysts warn of 'Reverse Goldilocks' environment

This 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

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