Use Rallies To Reduce Risk

Rising long-term interest rates and persistent inflation are identified as the main risks to stock valuations this summer, with geopolitical headlines seen as fading in market impact. The note recommends using any equity rally to tactically reduce exposure, signaling a defensive stance toward risk assets.

Analysis

Rising long-term interest rates and persistent inflation are identified as the main risks to stock valuations this summer, with geopolitical headlines seen as fading in market impact. The note recommends using any equity rally to tactically reduce exposure, signaling a defensive stance toward risk assets.