Savita Subramanian, Head of Equity and Quantitative strategy at BofA/Merrill, is ‘terrified’ of this market — pointing to inconvenient truths within the staggered economy. She cites Central Bank rigging, which is 7 years in the making, as having minimal effect on economic growth. Her points were salient, logical and unemotional– which kept the jerk to the left of her as quiet as a mouse.
She’s calling for the motherfucking recession inside of 12 month — accompanied by centaurs controlling trading on the NYSE — sending to SPY swimming all the way to 2,000 — or 7% from present levels. Her most hated sector is consumer discretionary, describing it as a denizen for fucking morons, pancaked between margin pressures and deflation. It’s all very doomful, indeed.
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So this gal says we will be in a recession within 12 months and we’ll drop 7%? Seems pretty pollyannaish to me. When we do have a recession, at a 7% decline the ‘fat lady’ as the saying goes won’t be singing, she’ll be merely clearing her throat.