Forecast Blindness
Thursday, December 15th, 2016 Categories: Elections, Government Bonds, United States
Retracement is a natural market mechanism
Our charts suggest that US Treasuries are oversold and that equity sectors like US Financials are overbought. Even if forecasts of the new Trumpflation era are correct, investors still need to price the risk of non-delivery. Where better than in those assets which reacted strongest when the new era dawned?