US and European equities – HSBC analysts warn of 'Reverse Goldilocks' environment

<p>This would have been better earlier in the week, but here goes … Via HSBC, analysts there saying its now a ‘Reverse Goldilocks’ environment and time to get out of risk assets:</p><ul><li>the rally into year-end 2023 was 'Goldilocks', the Fed’s dovish pivot in December amplified it</li></ul><p>But now its time to reverse that, going with the momentum argument first:</p><ul><li>
“Markets typically trade the direction of travel / rate of change. And that’s down and negative. </li><li>cut overweight on equities, decreased exposure to US and European assets to underweight from overweight</li><li>wait for a better reentry point in terms of investor positioning and sentiment</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.