JPMorgan Casts Wary Eye on `Unhelpful' Rates/Dollar Correlation
- Disruption could be as big as equity-bond reversal in February
- Turmoil not base-case but fundamentals, technicals in play
Global Rates Doubt Behind Dollar Rally, Says Nordvig
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Higher rates along with a higher U.S. dollar could be as disruptive to global markets as the reversal of the correlation between stocks and bonds in February, according to JPMorgan Chase & Co.
Yet strategists led by John Normand don’t see this potential disruption as their base case and largely aren’t positioned for it, because they still expect a synchronized global upturn and continued U.S. political risk, they wrote in a note Friday. But they are watching developments.