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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US
- While the rising uncertainty over the Delta (and Lambda) variants in addition to the contraction in Chinese liquidity have been constantly pushing LT yields lower, US equities continue to gradually reach new all-time highs (with the SP500 index approaching the 4,400 level).
- We have seen recently that the crash protection in equities (SKEW) has been rising; in the past cycle, a surge in demand for 'crash protection' has been generally followed by sharp equity drawdowns.
- At the same time, global liquidity keeps rising as central banks continue to increase the size of their balance sheet to support the global economy.
- This chart shows the dynamics of the SP500 index with the sell-side year-end median forecast.
- We can notice that the SP500 Index has started to diverge slightly from analysts' year-end median forecast, currently estimated at 4,213 according to Bloomberg.
- Should investors worry about US equities, or will the liquidity injections be enough to compress near-term price volatility in the coming months?
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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