Fed’s ‘Sugar High’ Needs to Wear Off on Investors: Haselmann
2015-01-07 19:23:45.830 GMT
By Vivien Lou Chen
(Bloomberg) -- “The bottom line is that I expect a large
equity price adjustment (down) to occur imminently,” Guy
Haselmann, Scotiabank director of capital markets strategy,
writes in note.
* “Portfolios need to adjust from blindly accepting the Fed’s
‘sugar high’ toward realistically assessing valuations based
on fundamentals”
* Going forward, “prices will have to be supported by
fundamental values rather than easy money and speculation”
* After 6 yrs, “there is quite a bit of speculation to
work off”
* After 6 yrs, “there is quite a bit of speculation to
work off”</li></ul>
* Fed will likely vacillate between “over-confidence and
fear” during adjustment process
* “I remain a bond bull”
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To contact the reporter on this story:
Vivien Lou Chen in San Francisco at +1-415-617-7078 or
vchen1@bloomberg.net
To contact the editors responsible for this story:
James Holloway at +1-212-617-4454 or
jholloway8@bloomberg.net
2015-01-07 19:23:45.830 GMT
By Vivien Lou Chen
(Bloomberg) -- “The bottom line is that I expect a large
equity price adjustment (down) to occur imminently,” Guy
Haselmann, Scotiabank director of capital markets strategy,
writes in note.
* “Portfolios need to adjust from blindly accepting the Fed’s
‘sugar high’ toward realistically assessing valuations based
on fundamentals”
* Going forward, “prices will have to be supported by
fundamental values rather than easy money and speculation”
* After 6 yrs, “there is quite a bit of speculation to
work off”
* After 6 yrs, “there is quite a bit of speculation to
work off”</li></ul>
* Fed will likely vacillate between “over-confidence and
fear” during adjustment process
* “I remain a bond bull”
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Vivien Lou Chen in San Francisco at +1-415-617-7078 or
vchen1@bloomberg.net
To contact the editors responsible for this story:
James Holloway at +1-212-617-4454 or
jholloway8@bloomberg.net