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:
Beckham: The idea that the Fed is going to cut rates continues to move farther into the future
John Luke: mirroring the continued push-out of the “looming recession”
Source: Apollo as of 05.22.2023
Dave: at a time when actual capital spending seems to have stabilized from multi-year lows
Source: BofA as of 05.22.2023
Dave: Narrow leadership is THE story of the past few months
Source: Goldman Sachs as of 05.22.2023
Dave: as the average stock just can’t keep up with the megacap tech leaders
Source: Raymond James as of 05.22.2023
Dave: and equal-weighting is trailing market-cap weighting by the most in two decades
Data as of 05.23.2023
Brad: resulting in a historic reliance on a few names to carry stocks higher
Source: Strategas as of 05.24.2023
John Luke: U.S. Treasuries have become less and less useful to foreigners in recent years
Source: Strategas as of 05.22.2023
John Luke: for not only geopolitical reasons, but also because they’re just not that attractive
Source: Strategas as of 05.24.2023
Dave: Speaking of foreign business exposure, it’s much higher for larger US companies than for the smaller ones
Source: Strategas as of 05.23.2023
Dave: creating a tricky situation for those large companies who’ve become more reliant on non-friendly regions
Source: PSC as of 05.22.2023
John Luke: On a positive note for the economy, consumers remain decently liquid despite some hits from higher prices
Data as of May 2023
John Luke: The question with all of this is, how will things change if the Fed truly ends (or even slows) its long period of stimulus
Data as of May 2023
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