“JP Morgan has some good comments on the markets and the effect of potential future government actions. For now, they’re saying the markets will likely have trouble finding their footing without a robust policy response or stabilization in the macro data. Interestingly, they do NOT believe QE3 will be a positive catalyst going forward:
If you enjoy the content at iBankCoin, please follow us on Twitter“For a sustainable rally we would need the following: either a stabilisation in macro momentum or, more importantly, a robust policy response. Restart of the SMP programme,short selling bans nor the IMF rescue of Spain fit the bill. Markets tended to quickly rollover post these types of actions historically. Eurobonds remain as distant as ever.”
