In a note written by strategist Lori Calvasina
Says that "for now, we are buyers of the dip" in US equities. They argue that there are more positives than negatives for US equities and say that "daily drops of 3% or more in the S&P 500 have tended to be buying opportunities post-GFC".
The note also mentions that the index has typically been "meaningfully higher" six months after such drop based on historical measures.
Meanwhile, their global head of FX strategy, Elsa Lignos, spoke to Bloomberg earlier and says that "it could take a couple of weeks" for FX markets to switch back to "risk-seeking" again from the moves that we are seeing over the last two days.
Elsa also says that "there are far more inflationary pressures building up" this time around and she attributes last Friday's US jobs report (which showed higher wage growth) as one of the major reasons for this week's sell off.
Well, you could point your finger to a lot of things and everyone has their own view on it. Algos. Inflation. Bond yields. Overdue correction. Overvaluation. Fact is, equities are down which way you look at it. Trade what you see in front of you, don't go chasing after ghosts.
