HSBC says there are reasons to cautious in the US equity markets, including:
seasonalityUS election
But:
we think the market may have got the order of the positioning the wrong way aroundLow near-term US earnings expectations now set us up for a further squeeze higher in equities
After the election it could be a different story though:
we are starting to become increasingly skeptical about a sizable post-election rallyOur view continues to be the exact opposite of the apparent current consensus: if we had to sum it up real quick, do the opposite of what worked in Q3
This article was written by Eamonn Sheridan at www.forexlive.com.
