The stock market is still priced for ‘absolute chaos,' but the worst-case scenario will be avoided, Nomura strategist predicts

Charlie McElligott says equities are likely to grind sideways and a full-on rout is unlikely, disappointing those positioned for a sharp sell-off. Implication: a range-bound market with limited downside risk, suggesting tactical positioning should favor neutral or defensive exposures rather than aggressive short bets.

Analysis

Charlie McElligott says equities are likely to grind sideways and a full-on rout is unlikely, disappointing those positioned for a sharp sell-off. Implication: a range-bound market with limited downside risk, suggesting tactical positioning should favor neutral or defensive exposures rather than aggressive short bets.