Wall Street Bulls Are Very Hard to Scare; 11 July
Wall Street’s tolerance for shock is becoming heroic.
First came the inflation angst, then the tariff crash, then the war in the Middle East. At this point, it’s hard to imagine what could still rattle the investor class.
Speculative spirits were on display again this week
JPMorgan Chase & Co. CEO Jamie Dimon has a different word for it: complacency.
But for traders sitting on fattening profits in crypto, tech, leveraged ETFs, commodities and beyond, it’s feeling like vindication.
“We absolutely believe the recent bullish price action in risk assets makes sense,” said Max Kettner, chief multi-asset strategist at HSBC.
“Bear in mind this is no longer just equities but spreading across virtually all risk assets. So if anything, we’d argue investors are once again under-exposed and continue to fight the rally.”
The S&P 500 closed Friday marginally below its record. Risk premiums tracking US corporate bonds hovered around their lowest level of the year. Bitcoin exchange-traded funds continued to see inflows.
The view reflects an increasingly common bet across Wall Street, known as the “TACO” trade, for Trump Always Chickens Out. Whatever the reasoning, bullishness is prevailing.
Despite concerns over potentially stretched valuations and mixed economic signals, bulls say it’s a mistake to get in the way of markets rolling with this much momentum.
Bloomberg 11 July 2025
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