Risk assets should continue higher amid an economy that’s in good shape, barring “some exogenous event,” and “bearish arguments appear to be increasingly contrived,” said Jonathan Golub, RBC strategist.
Drivers of market upside include: synchronized global pickup, easier lending conditions, improving consumer situation, renormalization of rates and corporate profits.
Bear arguments valuations being too high (multiples rise in the “clear majority” of years) and Trump (“Trump darling stocks” haven’t outperformed since the election) .Greatest current risks: degradation of Chinese growth, and margin pressures amid rising wages.
Source: Bloomberg Pro Terminal
Trader Bozhidar Arabadzhiev
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