QQEW - Letter To Equity Bears: Do Not Underestimate The Force Of Liquidity

• In the past cycle, the Fed has become very sensitive to a sudden tightening in financial conditions, especially when equities start to fall aggressively.
• Another 5 trillion USD are expected to be injected by the major 5 central banks in the coming 2 years.
• We do expect the trend in mega-cap growth stocks to resume in the coming months, sending US equities to new all-time highs.
• Any bear retracement in the near to medium term could be seen as a good opportunity to buy the dip.
• It is not a good time to try to short equities but to diversify your holdings.

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