14 November 2018

Weekly Insights From The FNArena News Desk 13/11/18

“Markets have changed in 2018 as monetary policy normalizes and peak growth is evident. Nothing captures this better than our Quantitative Derivatives Strategy team’s observation that the buy-the-dip strategy that performed so well in the QE era is no longer working.

“October was not just a technical sell-off like the one in February. We now have fundamental drivers: higher interest rates, slowing economic growth next year, margin risk, and tighter financial conditions.

“They all add up to investors holding less risk and, without incremental money flows, this new primary downtrend will likely take time to reverse.”
Morgan Stanley Chief US Equity Strategist, Michael Wilson

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