Moments ago, after having called the bear market bounce for what it was just on February 11, and positioned accordingly to take advantage of the expected 6-8% rebound...
Swiss private bank Geneva Swiss Bank just called the end of the bear market rally, and has gone back to a market neutral stance.
Here is their reasoning:
"Dear All,
Please note that after this nice rebound in equities, we are moving tactically cautious.
Actions taken today: we moved to market neutral (long equities / short index futures) on our new Swiss Tactical Equity Certificate and have bought downside protection on the S&P500 in our portfolios.
We believe that :
- This was just a bear market rally driven essentially by hedge funds covering their shorts…
- Many risks including China/CNY, Oil supply, US economy, German economy/social situation, BREXIT, earnings growth, high valuations, still remain in mind.
- Investors are losing confidence in Central Banks hazardous monetary policies and buying gold as the ultimate hedge."
while stocks have soared relentless into today's latest short squeeze, not only bonds...but the all important USDJPY carry trade, have both completely ignored today's move in equities.
