The 'Yellen Call'. I had to look it up. I suspect it's a term that will become more common.
So.... er, each time the stock-market perks up, then the US Treasury will get out the fire-hoses? If so, I reckon the inflection point on this interest rate cycle might mark the end of the best returns... US => 6 months left, UK 1 year? ..... hmmmm... time to start de-risking in those markets?
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http://www.digitallook.com/news/interna ... 35845.html
Goldman Sachs recommends top themes and trades for 2016 -
...Other themes include a "limited upside" to US equities in 2016 as rallies in risk sentiment may be met by less accommodative monetary policy, aka the ‘Yellen call’. Other themes include a "limited upside" to US equities in 2016 as rallies in risk sentiment may be met by less accommodative monetary policy, aka the ‘Yellen call’.
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Goldman Sees Yellen Call Limiting 2016 U.S. Stock Market Gains
http://www.bloomberg.com/news/articles/ ... rket-gains
The "Yellen call" may soon replace the Bernanke put as standard operating procedure at the Federal Reserve. And that’s not great news for the U.S. stock market.
So say strategists at Goldman Sachs Group Inc. in reports for clients this week. With the Yellen call, the central bank would be inclined to raise interest rates as the economy and stock market improve, limiting gains in equities. That’s the flip side of the Bernanke put -- the idea that equity investors were protected against big market slumps because the Fed would ease policy to limit the damage.
"The inflection point for this shift to a tightening bias will arguably arrive in 2016," chief credit strategist Charles Himmelberg and other Goldman analysts said in a report Thursday.
Under a scenario which they named for Fed Chair Janet Yellen, rallies in equities and other risky assets "may be met by less accommodative monetary policy." That contrasts with the Fed’s perceived reaction function under Yellen’s predecessor, Ben S. Bernanke.
Partly as a result, Himmelberg and his colleagues see "limited upside" for U.S. equities in 2016. [conts]