Risk assets will probably rally if the Fed pumps more liquidity into the system, but the stock and corporate bond markets may riot before the Fed acts. Thus, the risk/reward balance has become too unfavorable to maintain a pro-growth investment stance in our view.Is this the capitulation of rational bulls? There are, of course, other types of bulls too. In the meantime it becomes widely accepted that Japanese Yen makes some problems for the "risk-on trade". Is this due to inter-market correlations?
Is this a signal for a contrarian?
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