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...

The Fed Getting Squeezed

*  Fed Expected to Hike 50bps at Next Two Meetings. As you can see below, the odds on both are at 100%. Given the persistence of inflation, the Fed has been put into defensive mode (i.e., forcefully tightening policy) even into a growth slowdown. Source: Bianco...

The Second Leg to Drop

First, I really wanted to touch base after yesterday’s price decline across indices – it was the worst day since June 2020. I know that I have been saying for quite some time that the market will continue to remain volatile until it perceives that we have seen some...

Equities in a Tightening Regime

We continue to understand that emotions are heightened in this current market – the volatility is real. Thus, we know that a lot of y’all are focusing on how to help your clients Think Well and we love that. But, being a wildcard, I’m going to take this musing in a...