dinsdag 30 mei 2017

Fink Fears Bond Curve Signals, Cooperman Warn Stocks Ahead Of Fundamentals

US equity markets pushed back into the green this morning just as two heavyweight investors suggested all is not well in the land of exuberance. Blackrocks' Larry Fink warned the equity market is not appreciating the message from the Treasury yield curve (and sees lower growth than Trump hopes for), while Omega's Cooperman warned that markets are fully priced, and ahead of fundamentals. Fink headlines from his comments at a Deutches Bank conference:
*BLACKROCK'S FINK SAYS SEEN VERY LITTLE ON REFORM FROM TRUMP
*FINK: EQUITY MARKETS REMAINER OF YR DEPENDS ON TRUMP
*FINK: SAYS U.S. GROWTH IN MID-2S IS NOT HAPPENING
*FINK: WE'RE STARTING TO SEE EXCESSES IN CREDIT MARKETS AGAIN
*FINK: CREDIT MARKETS ARE RICH
*FINK: MARKET ISN'T APPRECIATING THE YIELD CURVE
And Omega's Cooperman was on CNBC:
*COOPERMAN: MARKET IS FULLY PRICED, AHEAD OF FUNDAMENTALS
*COOPERMAN: WOULDN'T OWN BONDS, VERY FULLY VALUED
But then added...
*COOPERMAN: CONDITIONS THAT SPUR MARKET DECLINES NOT PRESENT...
As BofA wrote just this morning, it appears equities are the last man standing...


With the Treasury curve below Trump lows, Hard data below Trump lows, and even Soft data now collapsing back to reality, stocks seem to know only one thing, the $100 billion a month of buying from central banks better not go away anytime soon!