Page 29 - Nalyst Note News Today

"The consensus trade for 2023 is short equities. Think about that," Fundstrat's Tom Lee said, hinting that the contrarian trade is long equities.

"The most important takeaway for me is that investors are putting too much faith on taking the Fed at 'face value," Fundstrat's Tom Lee said.

"The absence of substantial equity outflows is historically unusual and kept our asset allocation cautious this year," BofA said.

Mike Wilson believes the 17% rally in the S&P 500 rally from its mid-October low is simply a bear-market rally.

"The Fed and bond market are no longer acting as if inflation is as sticky as many expect," Fundstrat's Tom Lee said.

"When the S&P rallies above its 50 and 100-day moving average, it looks technically vulnerable as it heads towards its 200-day moving average."

The "unprecedented leverage risk" lies with governments and central banks, and that could lead to liquidity risks popping up in both stocks and bonds.

Tesla's decline has been notable since Musk closed the Twitter deal in late October, with the stock falling 25% compared to the S&P 500 being up 3%.

"Essentially, the US signaled it is 'happy' for India to continue buying as much Russian oil as it wants," JPMorgan said.

"Valuations in equities have fallen a long way since the beginning of this year but this doesn't mean to say they are cheap," Goldman Sachs said.