SA analyst: Lower yields could ignite stocks and crypto
Wall Street rallied Friday after the latest consumer inflation report came in broadly in line with expectations, helping ease concerns over price pressures and supporting a rebound across risk assets.Seeking Alpha analyst Alex King of struck an optimistic tone on the outlook, despite a difficult week for traditional portfolios.“This week, you were happy if you owned oil or Ether, strange bedfellows those, and unhappy if you owned stocks or bonds,” King stated.On Friday the Dow Jones Industrial Average gained +0.9%, while the S&P 500 () advanced +0.8%, and the Nasdaq Composite climbed +0.9%.King said Cestrian rejects the increasingly bearish outlook for government bonds, arguing that the “bonds are going to zero” narrative is likely to prove wrong.“We are, in fact, bullish ZROZ and TLT with a 12 month timeframe in mind,” he said, signaling confidence that longer-duration Treasury ETFs could benefit over the coming year.King also maintained a constructive view on equities and cryptocurrencies, despite recent market volatility.“We also believe equities and crypto are going to close the year higher than here,” King said.Content provided by Seeking Alpha is intended for information purposes only, and that Seeking Alpha does not offer any personalist investment advice and is not a licensed securities dealer, broker, US investment adviser or investment bank.