Photo: Enchant_me, Flickr
BTIG’s Dan Greenhaus relays the following in his latest note…We won’t bore readers with any additional commentary on the European situation. Much has been said and quite frankly, enough has been said (we’ll leave commenting on every minor development to others). For now, investors remain focused solely on the market’s (relative) attractive valuation, improved liquidity conditions, the removal of tail risk banking outcomes and improving economic conditions in the United States. This week, the improved liquidity conditions will highlighted by central bank meetings (the BOE and ECB both meet). In light of these developments, those with whom we’re speaking feel justified in taking the market higher. For now, we won’t argue.
Cheap stocks + liquidity + moral hazard (removal of tail risk) = a pretty winning combination.