The Market in Pictures, November 18

by | Nov 18, 2022 | 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:

 

JL: Year-over-year food costs are set to deflate for the first time since pre-COVID

 

Source: Bianco as of 11.16.2022 

 

Brad: though food costs are an outlier when you look across the universe of CPI components

 

Data as of 11.11.2022

 

JD: The rate of producer price inflation may have peaked but is still running way above the Fed’s 2% goal

 

Source: Stifel as of 11.15

 

JL: and investors are still debating daily whether prices will follow a 1940s or 1970s path

 

Source: Raymond James as of 11.17.2022

 

Beckham: Historically, rate hikes have stopped once short-term rates rose above than long-term rates

 

Source: Strategas as of 11.17.2022

 

JL: and the current inversion has now reached into the 3 month/10 year curve

 

Source: Bianco as of 11.16.2022

 

 Joseph: Prior bear markets have often signaled a shift in sector leadership

 

Data as of 09.30.2022

  

JL: which could be significant given the extreme weight hit by the famed megacap tech names

 

Source: Strategas as of 11.14.2022

 

Dave: and deliver extreme episodes of performance disparities

 

Source: Strategas as of 11.16.2022

 

 JL: Earnings estimates have historically tracked closely with stock prices

 

Data as of 09.30.2022

 

Dave: and earnings are finally showing showing signs of moving in tandem with stock prices to the downside

 

 

JL: which makes (lower) earnings yields a lot less attractive relative to (higher) Treasury yields

 

Source: Bloomberg as of 11.16.2022

 

 

 

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