Equities and bonds cannot rally together forever - Our weekly cross-asset views
This was a short week due to Thanksgiving, but still enough to see markets swing back to a risk-on mode at a relatively good pace for another buy-the-dip episode. MSCI World is up 3% wtd (last 5 sessions up), the SPX (+3.2% wtd) has almost retraced its November loss while US Tech indices are still halfway (NDX +4%, Mag7 +4.7% wtd). US High Yield spreads are back below 280bps as the VIX dropped back to 17 (vs last week high of 28). Our Risk Perception Index is down from 47 to 33. Gold is up (3%), US small caps surge 5% and US dollar down (-0.5%) wtd as Fed rate cut expectations increased.What w...