The Market in Pictures, June 16

by | Jun 16, 2023 | 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:

 

John Luke: Most of the yield curve has separated itself from the Fed Funds rate, with seemingly no rush to sync up

 

Source: Strategas as of 06.14.2023

 

John Luke: Clearly the Fed sees that inflation means more than just the latest CPI headline

 

Source: US Bureau of Labor Statistics as of 6.15.2023

 

John Luke: with services being a stickier item than goods ever was

 

Source: Bianco Research as of 5.31.2023

 

John Luke: For better or worse, corporate profit margins remain off the charts

 

Source: Bloomberg as of 5.31.2023

 

Dave: and based on future earnings estimates, strategists think this will remain the case

 

Source: Morgan Stanley as of 6.15.2023

 

John Luke: The impact of quantitative easing is most obvious in the huge expansion of the Fed’s balance sheet

 

Source: Strategas as of 06.12.2023

 

John Luke: which will be tougher to maintain as higher rates push interest expense higher

 

Source: Strategas as of 6.14.2023

 

Dave: Judging by recent bear markets, this strength is too much to maintain a “bear market” label

  

Source: Bloomberg as of 06.14.2023

 

Dave: but bear markets generally end with high unemployment, not record lows

 

Source: BLS as of 6.16.2023

 

John Luke: and with valuations so high

 

Source: Strategas as of 6.12.2023

 

John Luke: Investors have been flocking to these new higher rates in bonds, but may be missing a huge dividend growth opportunity

 

Source: Bank of America as of 6.15.2023

 

John Luke: Compounders can only do their thing if held for the long-term, interesting look at the past decade’s biggest wealth creators

 

Source: Mauboussin as of 12.31.2022

 

 

 

 

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Advisory services offered through Aptus Capital Advisors, LLC, a Registered Investment Adviser registered with the Securities and Exchange Commission. Registration does not imply a certain level or skill or training. More information about the advisor, its investment strategies and objectives, is included in the firm’s Form ADV Part 2, which can be obtained, at no charge, by calling (251) 517-7198.

Aptus Capital Advisors, LLC is headquartered in Fairhope, Alabama.

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