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…...
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…...
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,…...
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. In this week’s Episode we introduce Chris Dover and experience his systems-based trading strategy. Additionally, we take a look at the quarter-long rally in bond yields that may be at a tipping point. “The stock…...
The derating of stocks is not over but may take a pause as stimulus boosts liquidity. Our cycle analysis strongly suggest PEs will fall this year as rates rise and earnings revisions flatten out. This is a high conviction, non-consensus view we think is already playing out at the stock level. While unfinished in our…...
Stocks danced higher this past week to produce their best week since February. The Dow Jones Industrial Average (DJIA) closed above 32,000 for the first time while the S&P 500 (SPX) and Russell 2000 (RUT) both achieved record levels this past week. The Nasdaq (NDX) climbed out of a 3-week losing streak and correction territory…...
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 Thursday and discussing the recent correction in the Nasdaq, what might bring about the next consolidation and rotation in the markets and how the bond market is expressing signs of exhausted selling. Primary reasons for correction:…...
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…...
