Global Equities Convey Entered Stage Iii (Now Alongside To A Greater Extent Than Star Trek)

Fascinating.

From FT Alphaville:

Robert Buckland was upbeat every bit e'er on Thursday, only Citi's global equity strategist likewise offered a warning. “Phase 3 has started”, he writes:

We intend that global equities bring entered Phase 3 of the credit/equity clock. This is the menses towards the destination of the bicycle when credit spreads offset to rise, only equity indices proceed to brand novel highs. Share toll volatility moves higher inwards business alongside widening spreads [see nautical chart below]. Phase 3 lasted xvi months inwards the belatedly 1980s, 32 months inwards the belatedly 1990s, only alone iv months inwards the final marketplace cycle.

Stock marketplace investors should intend Tribbles, rather than the to a greater extent than Klingon-esque dangers of stage 4, when they should hoard authorities bonds in addition to canned food. Favour cyclical stocks over the to a greater extent than defensive sectors, said Rob, in addition to offset to trim exposure to credit (which tends to autumn inwards toll every bit credit spreads widen).

Or, for a to a greater extent than alarmist stance, in that location are the quantitative strategists at Société Générale.... 

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