Make or break, that is the question

 

 

S&P 500 is just below its all-time high. Most strategist and chartist are positioning themselves for a year end rally.

A break out might happen if a deal with China will be singed. Or some large caps might surprise with Q3 earnings.

Fundamentally, the latest US Markit PMI data were again positively surprising. Based on the historical correlation between this data and the US equity market performance a further upside is in the cards.

Furthermore, the PMI data is as well indicating that US corporate bond spreads might tighten a bit further, which implicates positive returns for US corporate high yields.

 

Source: https://www.linkedin.com/posts/blackfort-capital-ag_yieldcurve-bullmarket-equitymarket-activity-6593460626570391552-h6Oa

Published: 25.10.2019 by Blackfort CIO Dr. Andreas Bickel

 

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