The most significant moves were in the FX and rates markets, with the 10-year yield climbing by 16 basis points to close around 4.44%, breaking above the long-term downtrend that began in October 2023.
Labor Day in the U.S. marks the end of summer and a break for Wall Street. Markets, banks and institutions are closed, but international markets remain open.
U.S. equities don’t just look elevated vs their own history, in fact, the US PE10 is still 2.1x. and 2.4x respectively the PE10 for Developed ex-US and Emerging Markets.
The market is at a major inflection point in macro fundamentals, offering investors a once-in-a-generation opportunity to reposition portfolios. To put this opportunity into perspective, here is a look at the best trades of the past 50 years.
The traditional 60/40 investment portfolio recorded 13% growth in 2023, its third-best year since 2008. Investors ponder if favorable conditions in H2 of 2023 will continue in 2024.
There are encouraging signs that the “totally bullish” situation is looking much shakier. For example, the Dow Jones Utilities could be one of the most potent reversal patterns I’ve seen in years.
GDP per capita, while useful, doesn’t account for such things as strength of local currency, or price differencs between countries (e.g. plentiful/cheap vs scarce/expensive). Economists use Purchasing Power Parity (PPP) to show relative prosperity.
Either the bulls or the bears are going to be very, very happy with the release of this tension within the next few weeks. I just can’t for the life of me figure out who.
Despite growing concerns with U.S. regional banks, a debt ceiling debate standoff, another interest rate hike, and signs that the U.S. economy might be cooling down, a better-than-expected Q1 earnings season has kept investors in the market.
During Refinitiv Lipper’s fund-flows week that ended January 4, 2023, investors were overall net purchasers of fund assets (including both conventional funds and ETFs) for the second week in three, pumping in a net $37.06 billion.
With energy the only sector with a 2022 gain, Texas Pacific Land Corporation is a price leader in a little-known slice of the overall oil-and-gas industry.
Energy prices pulled back late yesterday, but it offered a little reprieve to the bond market where the 10-year benchmark yields in the US, UK, Sweden, and Switzerland reached new three-month highs.
