BAML Strategists See High Risk, Low Reward Market

We remain in a high risk, low potential reward environment. Last week’s jobs numbers disappointed Bank of America Merrill Lynch’s Global High Yield Strategy team. While wages were up, market valuations are equally high and “remain far from proper compensation for default risk,” they analysts wrote in a recent report. Their conclusion: This is a high risk market and they re-iterate the recommendation to fade the February 11 market rally — and don’t look back. High risk market: Will the “Dimon bottom” get spanked? It is the rally that some dubbed the “Dimon bottom” that technical and algorithmic analysts have said…