Are We Going For A Year End Rally ?

Well for sure you must know my view on that. Now that the ECB as delivered some stimulus by making a surprise cut  and that the market is looking forward to further stimulus from the Fed. With Yellen speech coming up  and the fact that there does not seem to be much event risk left out there all m y risk metrics gives a green light for the risk on

risk metrics risk regime

Also the data released today by the Investment Company Institute is quite clear. there are no abating the appetite of mutual fund for Equity investors. However the dislike for bonds is evident and my view is that if Yellen comes on the dovish side this should not be a surprise to the market and probably will give opportunities for bond holders to sell their holdings at a better levels potentially.

flow map cumulative flows

However it is clear from the above charts that we are now dealing  with an establish trend of selling bonds for equities and that there is still a massive amount of bonds to get rid of by investors….better not to say yes too quickly for this job at PIMCO and to hang on those equity portfolios then……