We can think about the year through three acronyms: TINA, TARA, and TAPAS.
TINA - There is no alternative.
TARA - There are real alternatives (Goldman Sachs).
TAPAS - There are plenty of alternatives (Deutsche Bank).
We were living in a TINA when rates were at zero. Wow then moved into the TARA world with nominal short rates close to 5.5% and real rates turning positive. We are now entering into the TAPAS world where there are plenty of alternatives. Investors can think about cash, bonds, or play equities based on current momentum.
Of course, plenty of alternatives at the beginning of the year will turn into TARA and then TINA as we move through the year and find out the rosy assessment for all assets will not be the reality that we live in. We start with choices and then end with view options.
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