Despite Market Surge, Bank of America Corp Stubbornly Refuses To Join The Rally

  • ECB gave all they had today (rate cuts/QE/credit purchases) but price action screamed “Quantitative Failure”…gold and volatility outperformed.
  • Risk assets about to top: ultimately markets about “rates” and “earnings”, little else; central banks have played “rates card” as aggressively as they can; ECB done, BoJ has nothing in the tank, and any US macro strength will elicit Fed rate hike expectations (the Fed wants to tighten); EPS momentum simply not strong enough near-term to overwhelm Q2 risks of Brexit, BoJ failure, US politics, China debt deflation.
  • There remain good investments, e.g. gold, US IG, defensive growth stocks in US, dividend yield in EU/Japan, “global peripheral debt” (i.e. EM debt), the “long Main St, short Wall St” theme, “best of breed” in EM (buy the best assets in the worst places); but near-term risk-reward in assets markets once again looks poor.
  • This article is brought to you courtesy of Tyler Durden From Zero Hedge.

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