Rearview to Windshield, July 2022

Developments Over the Past Month   The U.S. Officially Entered into a Bear Market: The S&P 500 has officially entered a bear market, marking the 27th bear market since 1929 (20%+ peak-to-trough decline without a 20% rally). Historically, bear markets have...

The Market in Pictures, June 17

Our team looks at a lot of research throughout each day. A few charts that caught our eye this week, and why:   JL: by any measure, the inflation picture is different than the past two decades  Source: PGM Global as of 6/14/2022   Dave: heading for only the...

The Market in Pictures, June 10

Our team looks at a lot of research throughout each day. A few charts that caught our eye this week, and why:   1) JD: this stayed on the “anti-correlation” side for a few years but 2022 has kicked off another red/high correlation period   ...

The Market in Pictures, June 3

Our team looks at a lot of research throughout each day. A few charts that caught our eye this week, and why:   Dave: market selloffs of the past decade have repriced equities to mid-teens PE ratios. This one not in that range yet, at least on a trailing basis...

Well, QT is Finally Upon Us

We are beginning a new regime as the Fed moves to reduce the size of its balance sheet which has grown to nearly $9 Trillion. Since March 2020, the Fed has made more than $4T in bond purchases. Now, to fight inflation, the Fed will begin to let some of their bonds...

The Market in Pictures, May 27

Our team looks at a lot of research throughout each day. A few charts that caught our eye this week, and why: 1) JL: hard to believe Fed Funds rate is still only 1% given the CPI backdrop, real yields are quite negative   Source: Bianco Research as of 5/25/2022...