It’s been a while since we’ve seen a fresh note from Jefferies strategist David Zervos, but a source at one of his clients tells us what he’s telling his clients right now about the state of the market.
We summarize what we were told:
- Developing market reflation to continue. Big central banks will remain loose.
- This will mean faster nominal GDP growth, and be good for “real” assets (like real estate, and possibly some commodities).
- 10-year yield easily capable of getting back to the 3-4% range.
- Very negative on everything emerging markets, especially equity, but also fixed income.
- Zervos prefers Summers to Yellen, says Yellen too institutionalized.
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