The Market Has So Aggressively Priced In A Dovish Fed
The Market Has So Aggressively Priced In A Dovish Fed: Tom Essaye Quoted in MarketWatch on MSN
November jobs report likely to show a solid 190,000 increase, with unemployment staying at 3.9%
As a result, market participants will be much more sensitive to a hotter-than-expected number than to a softer-than-expected figure, said Tom Essaye, founder of Sevens Report Research, in a Thursday note.
That means the threshold for “too hot” figures — including payrolls, the unemployment rate and wages — that cause a pullback in both stocks and bonds is lower than it’s been all year because the market has so aggressively priced in a dovish Fed, he wrote.
“So, there’s less of a margin for error if the jobs report is stronger than expectations.”
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