The Market in Pictures, March 31

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: Yields on deposits are still laughably behind at many banks

John Luke: and with the recent “crisis”, large banks have little incentive to offer market rates

John Luke: And while it took awhile for money to take advantage of higher money market yields

Beckham: money is definitely moving to where it’s being compensated relative to the risk

Brad: And while this bond bear market has been persistent in its damage

Source: Strategas as of 03.27.23

John Luke: allocators are moving fast to adjust their allocations given the higher yields now available in bonds

Data as of 03.24.23

Brad: One return driver that’s been historically absent in recent years has been equity dividends

Data as of 03.24.23

Joseph: and valuations on dividend havens like utilities have suffered as relative yields have fallen

Source: Strategas as of 03.27.2023

Brad: When it comes to sector valuations, energy sits in a different universe than the rest of the market

 Source: Strategas as of 03.27.2023

John Luke: which explains a good chunk of the discounted valuations in other global markets

Source: Bernstein as of 03.28.2023

John Luke: Correlations between stocks and bonds are as high as they’ve been in decades

Data as of 03.27.2023

John Luke: with CPI regimes historically a big driver in the diversification potential of bonds vs. stocks

Data as of 03.17.2023

Dave: Wall Street strategists are counting on strong growth in order to achieve consensus earnings estimates

Source: Morgan Stanley as of 03.28.2023

Dave: perhaps at odds with the historical outcomes when M2 money supply is falling sharply

 Source: Strategas as of 03.24.2023

Dave: One year in, a look at how this FOMC rate cycle has impacted major assets compared to previous cycles

 Source: Strategas as of 03.17.2023

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