Risk assets rebound as HSBC strategist Kettner advises investors to buy on dips
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The team led by Max Kettner stated that this view is based on looser financial conditions, accelerating high-frequency consumer data in the United States, and an overall improvement in growth indicators. In their report, they wrote, "At least so far, crude oil futures prices have not converged upward towards Middle East grade crude and spot prices. In fact, they have moved in the opposite direction." The team continues to maintain its strongest bullish stance on equities while significantly overweighting emerging market rate assets. They are also overweight in high-yield credit bonds and gold, with a preference for European bond duration over U.S. bond duration. (Bloomberg)
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