Optimism Abounds
Bulls flinched but are back on board. That brings cyclical opportunities and secular risks.
In Case You Missed It: I was on Schwab Network this morning with Oliver Renick. For now, you can catch a snippet of our conversation or download all the charts we covered. I’ll post a link to the full conversation once its available.
We began by looking at longer-term trends in bond yields and how to think about current Fed policy. We wrapped up with a look at how the market is actually behaving. To paraphrase Ben Franklin, “It’s a bull market, if you can keep it.”
Key Takeaway: Sentiment data show widespread optimism and complacency. Bulls are needed for a cyclical bull market, but all-in investors creates an unattractive risk/reward environment from a longer-term perspective.
Keep reading for a closer look at several of the key charts or to download the entire report.
