Morgan Stanely: Fuck Goldman; Board the Ark

Morgan Stanley is out supporting the purchase of treasuries, aka “the ark”, amidst widespread fuckery taking place inside of every major central bank in the world. The arch-devils at Goldman are taking an opposing view, most likely because they’re trying to trick people into trades and then bet against them to meet their quarterly scam goals.

The Morgan call isn’t exactly revolutionary, all things considered. Bonds are, by far, outperforming stocks by 10% this year. They’re merely taking the side of continued momentum, unlike some people (cough) who called for a bond rally before the year started.

“The year started with a bullish tone, and we think that tone is reasserting itself now,” Morgan Stanley analysts including Matthew Hornbach, the head of global interest-rate strategy in New York, wrote in a June 10 report. The Fed will probably make the case for a gradual, cautious approach to raising interest rates, and the BOJ will likely ease monetary policy, according to the report.

Goldman Sachs strategist Francesco Garzarelli warned his clients that U.S. Treasury yields may climb “sharply” in the second half of 2016, in a note the same day. The payrolls figure “seems like an outlier” and bond valuations are “very stretched” Garzarelli, who is based in London, wrote.

Goldman being Goldman is like a shark being a shark. You can’t change one’s nature.