The S&P500 has been surging mainly thanks to a handful of strong gainers (lookin' at you Apple).
MS say thus its vulnerable to shocks, particularly rising rates
- MS note that the drive higher due to the few is nothing new
More:
- We expect a growth scare to be followed by a rate scare over the next weeks/months that could finally give us the first tradable correction in the major U.S. equity indexes
- could begin imminently
- more stimulus from Congress (in a range of $2 to $2.5 tln) if economic reopening stalls may spur a sharp increase in long-dated rates
- market is not prepared for this