The Market in Pictures, December 2

by | Dec 2, 2022 | Blog, Charts

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:

 

JL: This year stands alone in modern history, for its combination of stock / bond weakness

 

Data as of 11.30.2022

 

JL: with the negative correlation in recent ultra-low inflation years now returning to more typical patterns

 

Source: The Fed Guy as of 11.30.2022

 

JL: Valuations have come down from extreme readings

 

Source: Bianco as of 11.30.2022

 

Dave: but apparently not enough to motivate insiders to step up their buying

 

Source: Strategas as of 11.30.2022

 

Dave: It may feel like every fund is loaded with megacap tech, but institutions as a whole are holding them at less than index weights

 

Source: Morgan Stanley as of 11.28.2022

 

Joseph: Airline passenger load has just about caught up to pre-pandemic levels. Interesting caveat, jet fuel usage is still 12% lower, meaning flights are more packed

 

Data as of 12.01.2022

 

Dave: In another energy-related divergence, energy stocks have raced far ahead of gains in crude oil prices

 

Source: Strategas as of 11.28

 

Dave: Between low valuations and the inflation backdrop, small cap investors would love to see a repeat of 1970s behavior

 

Source:  Bank of America 11.30.2022

 

Brad: and other places to consider, if the recently weakened dollar trend persists into 2023

 

Source: Strategas as of 12.01.2022

 

Dave: We all know the Dow Jones Industrial Average has its quirks as a 30-stock price-weighted index. This year’s quirk is massive outperformance.

 

Source: Strategas as of 11.30.22

 

 

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