JPMorgan Goes Underweight Stocks "For The First Time This Cycle", Says To Buy Gold

Submitted by Tyler Durden on 03/03/2016 - 09:50

"We go Underweight Equities for the first time in this cycle.... We use the rally in stocks to sell it and go underweight stocks, versus HG corporate bonds and cash. The strong rebound of the past few weeks does create near-term momentum, and thus keeps our first UW small. Low growth and easy money and the reduced potential for capital gains should raise the demand for income. We focus this on US HG given its still over 4% yield, a rarity in the HG world. We are not ready to pursue FX or commodity carry at this point, but like high-dividend stocks. Within fixed income, we are now long duration."