When will the current market rally end?
In a note, SocGen identifies three signs.
First, excessive investor optimism.
Based on SocGen’s proprietary measure, we’re actually getting close on this.
Next is Treasury yields. When you see UST yielding 2.5%-3.0%, that will be a sign that the bear market rally is over.
And finally, CDS spreads on Western European countries. When they start to narrow, that will be the third sign.