Chris Watling from Longview Economics says there is a strong case for equities rally from current levels. His rationale is underpinned by a fundamental shift from central banks that are allowing inflation take hold and letting economies run a little hot. “This is becoming a bit of a theme globally. The Japanese have talked about being above inflation in their target and the Fed is now talking about it.” Watling says this move away from tightening has allowed markets to gain some traction. While he expects a hike in December from the Fed he says any serious tightening is unlikely. "So we’re looking for one more rally in this bull market now. What I call ‘one final flurry.’ It seems to me the Fed won’t tighten until we get it.” In this short video Watling provides more detail on his case for equities to rally.
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