J.P. Morgan: The other sting in the tail from fiscal policy; higher taxes and the Value rotation
Cross-asset strategy: This week’s Fed reiteration that it won’t hike for about three years despite extraordinary fiscal stimulus is extending the repricing of risk premia across financial markets. For us, the direction of risk premia is unambiguously higher in Bonds (high breakevens, steeper curves), but lower in Equities, HY Credit and Commodities (less earnings,…...
