Equity Strategy Market Update, Style Positioning − Where does the Momentum Unwind stand? The recent market volatility has been largely a function of a painful underlying market rotation out of high Momentum and expensive Growth stocks as rates and inflation expectations underwent a sharp adjustment. We see higher rates largely as a function of earlier…...
Research Report Insight #1 Prior to this past week, the S&P 500 had consolidated 4.5% from its peak in January. In February, the S&P 500 began another 4%+ correction and it may have culminated with a 5.8% correction this past week. Now let’s look at a the 1-year chart of the S&P 500 to get…
Where are markets headed as bond yields rise? J.P. Morgan’s Global Research macro views and top cross-asset trade ideas On March 1, J.P. Morgan Research hosted a virtual meeting featuring J.P. Morgan researchers to discuss the drivers of rising US Treasury yields and the implications across asset classes. We view last week’s US Treasury sell-off…
Much of the trading week was once again driven by fear of inflation, rising bond yields and a continuation of the Technology sector/Nasdaq (COMPQ) underperformance. Wall Street was whipsawed in volatile trading for much of the week. The S&P 500 (SPX) notched its best day since June on Monday, while the Nasdaq capped its worst…...
Welcome to this week’s State of the Markets. Please click the following link to review this week’s SOTM. In this week’s episode, we record live on Friday and during a wicked market correction in the Nasdaq. We update some of our recent historical data studies… some have remained relevant while others have to be discarded. As the bonds vs. equities debate continues…...
Cross-asset strategy: Higher rates was one of late 2020’s most-consensus views, but higher rate volatility was not. Hence, this week’s broad deleveraging across Equities, the EM complex and parts of Commodities as the DM Bond sell-off became disorderly. US money markets have been too quick to price the beginning of the end of easy…...
Research Report Insight #1 The benchmark index fell ~1% for the month, breaking from the typical seasonal pattern. February is usually a down month for the market and yet, the benchmark index rose ~2.6% for the month, also breaking a seasonal pattern dating back to the turn-of-the-century. In the chart above, if just go back…
Welcome back to Finom Group’s weekly Research Report cycle (3 weeks on, 1 week off). Investors have muddled through the back half of February with markets trending lower and volatility trending higher (VIX). The S&P 500 (SPX) rose during the first 2 months of February only to fall, to a lesser degree, in the final…...
Welcome to this week’s State of the Markets. Please click the following link to review this week’s SOTM. In this week’s episode, we catch up on some of our market quantitative studies, rationalize the bond market sell-off that is equating a VaR shock in equities, and look at the yield curve more in depth. One thing is for certain, there are no…...
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