Cross-asset strategy: Almost irrespective of macro tremors like the Texas energy shock, Bonds continue to telegraph confidence in the economy and skepticism of Fed guidance. That’s unsurprising given a Fed/fiscal experiment with a Yellen Treasury slogan (“go big”) to rival a Yellen Fed slogan from 2016 (“high-pressure economy”). It seems premature to fret about an…...
Welcome to Finom Group’s weekend data Mash-up at February’s month-end. With one week left in the trading month, the S&P 500 has grappled back all it had lost in January and then some. While the benchmark index seems in need of a rest and breadth has weakened over the previous trading week, last Friday’s decline…
By Marty Makary of the Wall Street Journal Amid the dire Covid warnings, one crucial fact has been largely ignored: Cases are down 77% over the past six weeks. If a medication slashed cases by 77%, we’d call it a miracle pill. Why is the number of cases plummeting much faster than experts predicted? In large…
A strong US consumer setup at a time of economic reopening to unleash pent-up demand and drive growth. Our positive 2021 outlook was anchored on stronger and earlier-than-expected consumer recovery and pickup in mobility post-Covid-19 vaccine, releasing cyclical and pent-up demand. We expect consumers to blowout expectations for rest of the year given: (1) economic…...
Many believe that bond yields will not be able to move up much, partly as there is no sustained inflation, and partly as the economy is holding a lot of leverage. Further, the general sentiment is that, if the bond yields do move higher, that could become a problem for the broader market, given the…...
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 take a look at the best time to own stocks, fund flow strength, breadth strength and misnomers about valuations. Can the S&P 500 make it to 4,000 before having a more protracted consolidation period? “Markets change minute by minute.…...
When can the US achieve broad vaccination of its population: Using the current rate of daily vaccinations (red line, Exhibit 1), we simulated different scenarios that forecast potential vaccine uptake by YE21 (black lines, Exhibit 1) which could lead to herd immunity (see our note here). In our analysis, we consider only the US population…...
Welcome to another trading week!! In appreciation of all of our Basic Membership level participants and daily readers of finomgroup.com content, we offer the following excerpts from our Weekly Research Report. Our weekly Report is extremely detailed and has proven to help guide investors and traders during all types of market conditions with thoughtful insights and analysis, graphs,…
The strong start to the year for risk assets was upended in the final week of January, as the rise of Reddit retail traders managed to produce outsized fear amongst the hedge fund community. With that, came massive deleveraging that hadn’t been seen since March 2020 and prior to that in 2009. Morgan Stanley: Monday…...
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 take a look at some breadth studies with respect to 3 of the major indices to dissect overbought conditions and to validate why we remain of the opinion that market pullbacks are breeding grounds for investor opportunities. “Learn…...
