Risk-On Vs. Liquidity Squeeze

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ValueWalk

S&P 500 ended a losing streak thanks to the still fine retail sales data, and even consumer confidence edged up. In the flattening yield curve characterizing the move to a slow growth phase, it was (and will be) up to tech to outperform value. Also healthcare is likely to see brighter times ahead. If I were to pick two reasons for why I think stocks are bottoming here, it would be the risk-on turn in bonds accompanied by the 10-year yield soundly below 3.25%, and the capitulation in oil stocks (former star performer as these are likely to get pulled down among the last sectors while the key la…

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