Happy Monday stock cucks.
Andrew Sheets, chief cross-asset strategist at Morgan Stanley, is out with a note tonight warning investors that the recent correction that was eradicated over the past week of rallies was merely an appetizer, an opening salvo into a sequence of events that poses to lay waste to the American stock market.
Higher rates effectively removes the sweet tit of low interest rates and leaves stocks naked and bare to face thw easterly winds by itself — dependent on earnings growth instead of multiple expansion.
The U.S. stock market only had a taste of the potential damage from higher bond yields earlier this year, with the biggest test yet to come, according to Morgan Stanley.
“Appetizer, not the main course,” is how the bank’s strategists led by London-based Andrew Sheets described the correction of late January to early February. Although higher bond yields proved tough for equity investors to digest, the key metric of inflation-adjusted yields didn’t break out of their range for the past five years, they said in a note Monday.
“It’s when growth softens while inflation is still rising that returns suffer most,” the strategists wrote. “Strong global growth and a good first-quarter reporting season provided an important offset. We remain on watch for ‘tricky handoff’ in the second quarter, as core inflation rises and activity indicators moderate.”
As a bear, what you want to see is the delicate woven seams begin to unravel. The Trump economic expansion plans ruined, Mueller to gain power and decimate the Trump presidency — a whole litany of events that pushes America into the toilet bowl of democratic branded marxism — full retarded healthcare and all.
Under a scenario of weakening GDP growth and higher rates, markets should ‘courrect’ by a solid 30%.
Bad news for bearshitstains, none of that nonsense is bound to happen. In one year henceforth, Robert Mueller will be rotting away in a dank prison cell and Barack Obama will be humiliated alongside his retarded portrait — forced to live out the rest of his days isolated in a Kenyan work camp.If you enjoy the content at iBankCoin, please follow us on Twitter