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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