Summit Notebook
Exclusive outtakes from industry leaders
Audio-JPMorgan underweight utilities
Abhijit Chakrabortti, global equity strategist at JPMorgan, told the Reuters Investment Outlook Summit that his firm is underweight utility stocks and other sectors sensitive to bond yields. “These sectors, with bond yields going up, have no valuation support whatsoever,” he said.
Audio – Gartman: Wal-Mart was key to bond market shift
Investment adviser Dennis Gartman, publisher of daily trading commentary The Gartman Letter, told the Reuters Investment Outlook Summit that one of the two things that changed sentiment in the bond market was the recent announcement by Wal-Mart Stores that it would scale back its expansion plans in the United States. “Who has been the great deflationary force in the United States in the past 30 years?” he said.
Audio – What private equity bubble?
“Everybody talks about, and I love this term, the private equity bubble. Remove it from your lexicon,” said Tobias Levkovich, chief U.S. equity strategist for Citigroup.
Private equity deals will likely continue to be made until something happens to disturb that gap, such as junk bond yield spreads widening or interest rates moving up, Levkovich said.
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