Trahan Pauses 39-Month Bull Call Citing Contagion Risk
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Francois Trahan, a three-year U.S. equity market bull who was ranked top portfolio strategist by Institutional Investor in 2014, is turning cautious on stocks.
U.S. shares are “at risk” because oil’s decline makes a crisis in a crude-producing nation “inevitable,” wrote Trahan, the head of strategy for Cornerstone Macro LP in New York, in a note to clients. Slowing growth in China and the possibility of a financial meltdown in Japan also pose threats to American equities, he wrote. The Standard & Poor’s 500 Index plunged almost 2 percent today as oil slid below $50 a barrel.