- Bond yields won't present a headwind to equities until the 10-year Treasury gets to the 3.25-3.5% level, says Credit Suisse, recommending clients stay overweight stocks.
- Year-over-year global GDP growth is accelerating for the first time in 3 years.
- Liquidity conditions remain supportive with the first Fed rate hike still many quarters away.
- The trends of equity outflows/fixed income inflows has now clearly reversed. Not mentioned by those bullish because of the great rotation is that stocks have had a massive rally the past few years as money exited equity funds. Why then would inflows be a tailwind?
- Broad equity ETFs: IYY, VTI, EXT, TOTS, EUSA, ITOT.