So much can change in just one week: where in the world “before Trump”, every asset manager was prepared for “more of the same” gradual deflationary status quo grind under the Clinton administration, following the dramatic Trump victory everything has turned upside down, and now the overarching consensus – roughly a mirror image of what it was just last Monday – is for soaring inflation, rising US Dollar and risk assets, yet another “great rotation” out of bonds and into stocks, and perhaps an economic revival.
To be sure, in the latest just released BofA fund manager survey in which 177 clients managing just under half a trillion dollars were querried, the results were largely as expected as per the just reset conventional wisdom and as determined by the price action over the past 5 days.
In a nutshell, and as BofA puts it, “Inflation expectations surge”, with global growth and profit expectations rise to one-year highs; inflation expectations soar to 12-year highs; number of investors expecting yield curve steepening surges by record amount… US election result seen as unambiguously positive for nominal GDP. Here are some charts:
This post was published at Zero Hedge on Nov 16, 2016.
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