JPM Previews Rising Rates: “In The Short Term, Investors Sell What They Can”

Jon Alternative Media, Banking, Blogosphere, Economy, Fiscal Policies, Market Commentary

Over the weekend, JPM addressed the question of whether “asset price inflation, produced by 7 years of zero interest rates, has to morph into asset price deflation when the Fed starts hiking rates.” It further adds: “We have for years argued that the driving force pushing up all asset prices has been falling uncertainty in the presence of no return on cash. Does this logic then not imply that the coming end of easy money must turn asset price inflation into price deflation, or a generalized bear market?” Unlike Goldman, which is so terrified of the rate hike it takes every opportunity to assure its few remaining flow clients that the only thing more bullish of ZIRP are rising rates, JPM covers every base: “the answer is Yes, No, and Depends.”
Here is the breakdown:

This post was published at Zero Hedge on 09/15/2014.