Barclays: too early to fade the rally
Expect any potential near term

pullback to be of limited magnitude

1) Long-only investor positioning is still

light and the ‘Fear Of Missing Out’ should support steady equity inflows

2) Key consumer and employment data is resilient in US and Europe, manufacturing destocking is well advanced and

Chinese dataflow keeps improving

3) Financial conditions are supportive, courtesy of the dovish central banks

4) Earnings downgrades are certainly not over but may have peaked already

5) Equity valuations are not cheap in absolute terms, but still attractive compared to expensive bonds.