This Is Not A Market For Selling Equity

According to a report on CNBC, Paul Schulte, head of multi-strategy research at Nomura International, indicated that the current market "is very much based on fundamentals.” He stated that the world has ample liquidity, which is why it makes little sense to sell equity at this point.

Paul Schulte said it’s time to watch the following:

1. Sovereign credit default swaps, which had fallen quite a bit over the past few weeks, are witnessing a rally.
2. Some of the investment grade and high-yield credits are reaching their 52-weak lows. The rally from here would be amazing.
3. The TED spread, which was not expected to go below 1%, hit 10 basis points on Thursday. As a result, investors must keep an eye on liquidity.

Emerging market credit defaults swaps in the sovereign and the corporate are seeing an impressive rally. Some of these credit defaults swaps are close to their all-time lows in terms of rally, which indicate all time high prices in terms of credits.

Read more from CNBC.