Is a doom loop ahead for equities as the U.S. Federal Reserve embarks on a quest to withdraw the stimulus needle from the markets? The party for European equities in 2016 is over, a Deutsche Bank report says. “We see no further upside for European equities for the rest of this year,” a May 23 European Equity Strategy report flatly stated, noting a higher probability for a downside rather than an upside scenario with a Fed-driven doom loop to blame. Doom loop occurs when markets sell off in anticipation of a Fed rate hike The Fed is entering a “doom…
Deutsche Bank Decries Fed Driven "Doom Loop" For Equities
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.