Equity markets around the world are soaring, but can it continue? The short answer is, for a variety of reasons we believe the risk on-rally is likely to continue for the intermediate term and the inter-market indicators below are important supporting information.
Signals from the FX markets and the market for Treasury Inflation Protected Securities ((TIPS)) are confirming the optimism in equity markets and suggest that this rally is sustainable, even if short-term corrections are inevitable. Here's what the markets are saying:
1 - The TIPS market was the canary in the coal mine for