The Market in Pictures, July 28

Our team looks at a lot of research throughout each day. A few charts that caught our eye this week, and the way they fit the unfolding puzzle of evidence:

John Luke: VIX has fallen into lower levels indicating complacency, but that hasn’t historically led to weaker returns

Source: Strategas as of 07.24.2023

Beckham: but for those looking to participate in equities, it’s been some time since hedges could be purchased at prices this cheap

Source: BofA via Market Ear as of 07.24.2023

John Luke: Inflation has fallen sharply across all segments

Data as of 07.24.2023

Dave: mirroring the drop in pace of consumer spending

Source: Raymond James as of 07.27.2023

John Luke: and markets are becoming confident that this week was the last hike

Data as of 07.26.2023

Brad: But are commodities signaling that the fall in prices may be reaching its limit?

Data as of 07.24.2023

John Luke: US corporations played the interest rate cycle just as well as US homeowners

Data as of 07.24.2023

John Luke: and based on the chart below, they’ve also reduced their share of government tax receipts over the past decade

Data as of 07.24.2023

Dave: Communications and technology are generating the lion’s share of upside earnings surprises

Source: Strategas as of 07.27.2023

Dave: helping overall earnings bottom in recent months

Source: Strategas as of 07.24.2023

Joseph: If conditions have indeed improved, it’s not a secret anymore

Source: Strategas as of 07.24.2023

Disclosures

Past performance is not indicative of future results. This material is not financial advice or an offer to sell any product. The information contained herein should not be considered a recommendation to purchase or sell any particular security. Forward-looking statements cannot be guaranteed.

Projections or other forward-looking statements regarding future financial performance of markets are only predictions and actual events or results may differ materially. 

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