Our team looks at a lot of research throughout each day. A few charts that caught our eye this week, and why:
Joseph: Current fundamentals looking nothing like those of historic bear market bottoms
Source: Strategas as of 07.15.2022
JD: Investors are allocating as though they assume this bear has further to drop
Source: BofA as of 07.15.2022
Brad: Perhaps the opportunity will be in small and mid-cap stocks
Dave: Or in dividend payers, which have room to contribute more than they have in recent years
JL: Inflation readings are virtually assured to continue as hot headlines thru year-end
Source: Bianco Research as of 07.18.2022
Brad: Commodity prices are in a large retracement but still up substantially vs. recent years
Source: Strategas as of 07.20.2022
Joseph: High-yield defaults are still historically low
Source: Strategas as of 07.18.2022
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The Consumer Price Index (CPI) measures the change in prices paid by consumers for goods and services. The CPI reflects spending patterns for each of two population groups: all urban consumers and urban wage earners and clerical workers.
The Russell 2000® Index measures the performance of the small cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.
The Russell 1000® Index measures the performance of the large cap segment of the U.S. equity universe. The Russell 1000 Index is a subset of the Russell 3000® Index, representing approximately 90% of the total market capitalization of that index. It includes approximately 1,000 of the largest securities based on a combination of their market capitalization and current index membership.
The S&P 500® Index is the Standard & Poor’s Composite Index and is widely regarded as a single gauge of large cap U.S. equities. It is market cap weighted and includes 500 leading companies, capturing approximately 80% coverage of available market capitalization.
Treasury yield is the return on investment, expressed as a percentage, on the U.S. government’s debt obligations. Looked at another way, the Treasury yield is the effective interest rate that the U.S. government pays to borrow money for different lengths of time.
Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in market value or an investment), credit, prepayment, call (some bonds allow the issuer to call a bond for redemption before it matures), and extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase).
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