Buy the dip in U.S. stocks - HSBC

investing.com:

HSBC analysts have weighed in on the markets after the Jackson Hole event, which makes one of the key near-term risks “out of the way.”

While there might be an increase in the issuance of bonds in the near term, HSBC analysts do not anticipate this leading to widespread sell-offs similar to the ones experienced at the beginning of August.

Moreover, they believe that short-term sentiment and positioning are now neutral.

“We think this presents a pretty good tactical entry point into risk assets, above all into US equities,” they wrote in a client note.

HSBC analysts prefer U.S. over European equities as they argue that U.S. exceptionalism is increasingly making a comeback due to the following reasons.

1) “U.S. GDP growth expectations are continually being revised higher, Europe’s are not;

2) Leading indicators are pointing to a deeper contraction in Europe, whereas U.S. manufacturing might turn the corner soon; and

3) Eurozone headline inflation should drop to almost 2.5% in Q4, while in the U.S. our economists expect it to increase.”