Tantrum or not?
It’s been a couple of week’s since a coordinated verbal intervention from the major central banks communication that QE will be rolled back, bond yields spiked and stocks corrected.
Fears of repetition of the 2013 selloff in all asset classes simultaneously – dubbed the “Taper Tantrum” – then lasting some 3 months, have so far not materialised.
We do not believe another “Taper Tantrum” will materialise this time around.
Our focus remain on the divergence in fixed income/forex vs stock markets as we believe the latter still partly discount Trump’s economic