BlackRock Inc's chief investment officer of global fixed income, Rick Rieder, said on Wednesday his team cut a February position they held shorting, or betting against, the US dollar while betting on Japanese yen appreciation.
Now, he said, "we have reversed" and are now favouring the US dollar.
Rieder said he does not believe US stocks are undervalued "at all," underscoring that his remarks at a conference yesterday that stocks could "maybe" go up five percent to 10 percent this year were not a prediction and that such a rally would be surprising.
In fact, according to Rieder, the "upside in equities is much more limited" as corporate cash flow moderates and the cost of financing moves such as share buybacks has increased, ending what Rieder called "the greatest arbitrage in history."
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