Welcome to this week’s State of the Markets. This week’s episode will hope to find a video recording, but presently I am without my voice. That may please some of you ;-). I am hoping to have my voice back soon as it has improved today. With that being said and our apologies, when the…...
A hotter but shorter economic cycle has implications for asset allocation as well as equity portfolio construction. In the near term, it means we are likely to move out of the early cycle leadership toward mid-cycle which comes with a move up the quality curve, too. Running with the Bulls. At this point, the bullish…...
2021 started out like a continuation of 2020 with tech ripping higher and everything else lagging in the US Equity markets, but as I’m sure you are well aware, the last month (plus) has been anything but. Below are the year to date returns for Russell, S&P500, Dow and Nasdaq. YTD Returns respectively $IWM 12.52%…...
Research Report Insight #1 Good stuff Edward and I urge our readers to review what Edward offered about TIME/DURATION and pair it with the following data: We’ve been chatting up the Facebook (FB) chart with Finom Group members in the Trading Room over the past couple of weeks. I’ve posted several charts recently on Twitter,…
Everyday I read The Chart Report. It’s a mixture of charts and thoughtful quotes for what I find to be “useful information”. And believe it or not, sometimes it’s not just relatable to markets, but to our every day lives. Here is a quote published in The Chart Report that I tend to think delivers…...
No month-end equity selling but likely buying, what if ship breaks, Oil and CTAs Over the past few days, the equity market was fairly weak despite no real change in the macro fundamental outlook. The Fed has remained dovish, the US stimulus was released as planned, and the pandemic and vaccination in the US are…...
It’s never easy, is it? As an active portfolio manager, trader or investor, it seems as though once we move beyond one obstacle, one fearful market narrative there is another one right around the corner if not immediately following the last fearful narrative. What could tip the scales from a bullish trend to a bearish…
If ever there was a week to take off and simply ignore it’s a FOMC meeting week. The second lease useful week to trade is a Quad Witching week. Last week, we had both and the market behaved as I anticipated, goofy! We already had an idea that things were going to be different…...
Cross-asset strategy: This week’s Fed reiteration that it won’t hike for about three years despite extraordinary fiscal stimulus is extending the repricing of risk premia across financial markets. For us, the direction of risk premia is unambiguously higher in Bonds (high breakevens, steeper curves), but lower in Equities, HY Credit and Commodities (less earnings,…...
Over the last couple of weeks, we have made adjustments to guidance and targets in a number of different asset classes including equities and fixed income. We meaningfully increased our expectations for economic growth here at home and also adjusted upward projections for multiple global regions and overall world growth. That was the foundation on…
