There are still actions you can take to take advantage of the market dislocations, even if you are fully invested.
A massive short-covering rally in risk assets caught many people by surprise, but it might be too early to break out the champagne.
Risk asset volatility is back, presenting both opportunities and threats to investors.
Most people know by now that there is a major traffic jam at the ports of Los Angeles and Long Beach. But Ryan Petersen, CEO of Flexport, reveals the true bottleneck.
As we get closer to the election, sector performance and volatility divergence in the equity and credit markets is growing. The post-election macro outlook is likely to be dominated by sector and asset class rotation rather than out-sized moves at the broad index level.
The Fed would like to see higher inflation. But wanting it more is not a policy. Other than “lower for longer” and more QE, it needs help from fiscal policy and from changes in global trends that are out of its control. This week saw further capitulation of inflation-sensitive assets, such as stocks and precious metals. Election jitters are growing and the market will have a hard time developing a strong trend in either direction before the results are known, which may not be on Nov 3rd.
This week’s WIP provides charts and commentary on changes in central bank policies, the collapse of Treasury volatility, China’s dominance in EM indices, and much more. 1. Summary of Central Bank Crises Policies 2. Treasury Volatility Hits Record Low 3. New High for S&P PEG Ratio 4. …
This week’s edition of the WIP raises questions on the “true” unemployment rate, highlights renewed Brexit risk in the U.K., puts the recent tech sell-off in context, and examines underlying trends in some components of the CPI basket…and more. Drop in Rents Keeps a Lid on CPI Alternative Unemployment Data Vanishing Hopes for More Fiscal …
Here is the latest Week in PIctures, covering the recent equity run-up to the highs and the subsequent hiccup. Last week saw the first wound inflicted in the lop-sided battle between valuations and liquidity. What’s next? 1. Mixed Picture in Unemployment Data 2. Reversal in Market Euphoria 3. Liquidity Everywhere 4. Equal Weight Indices Lag Market Cap Weight 5. S&P …
With Jackson Hole out of the way, global markets can get back to business, pricing in higher inflation and bidding up risk assets. What will cause a crack in momentum and valuations? It won’t be the Fed.