Enjoy the pre-tapering era
Editorial Lately, the mood has been to range trading, with two constants: 1) risk appetite by default. Our Risk Perception Indicator has just hit a low of 15%, while equities are on track for a fourth consecutive month of rises, and 2) confidence in the message hammered out by the Fed, that inflation is transitory and that tapering is not yet imminent . At the end of the week, however, we have witnessed a return to cyclical rotation, to the upward directional in commodities and rates curves steepening. Will the NFP be the spark next week for another bull acceleration?