Pinnacle Activity Ticker
Wall Street Strategists Historically Bearish on Stocks
Pinnacle Digest writes: In Gary Tanashian’s latest article he reveals a disturbing trend taking place amongst the shot callers on Wall Street.
Tanashian explains that right now Wall Street strategists are wildly bullish on T bonds. In fact, over the last 15 years, Wall Street strategists have never been this bullish on T bonds. In direct contrast, the recommended portfolio allocation from Wall Street strategists for stocks is at a 15 year low (hovering around 40%).
This begs the question (best explained in Tanashian’s own words) “Are the Wall Street banks doing the public a service by showing the way to safety or are they simply holding up T bonds for the ransom of even higher prices than those denoted by today's record low interest rates?”
Tanashian goes on to answers his own question. He believes that Wall Street strategists are so bullish on T bonds for the simple fact that they know the Fed has no other choice but to continue to buy. He states “it appears that the boys and girls on 'the street' are simply holding up a buyer that has made the purchase of these bonds the central theme of its monetary policy; a buyer that has to buy.”
Click here to read Tanashian’s full article here.