HSBC strategist remains very bullish on risk assets due to the Federal Reserve and China's continued stimulus

The dovish stance of the Federal Reserve, China's stimulus policies, subdued recent earnings per share expectations, and suppressed market sentiment have all contributed to HSBC strategist's "very bullish" attitude towards risk assets. The team led by Max Kettner remains overweight on high-yield bonds, US, Japan, Eurozone, and emerging market stocks. As the evenly matched US election approaches, clients are still cautious, indicating a "contrary sentiment and positioning." "We find it difficult to form a bearish argument at the moment."