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
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