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: Bond markets get credit for being better forecasters than equity investors, but they’ve not exactly nailed inflation expectations
Data as of 09.30.2022
Dave: but it could be worse; they could be the committee deciding who to include in the Dow Jones Industrial Average
Source: Strategas as of 10.31.2022
JD: This has been one of the sharper valuation resets in modern history
Source: Barclays as of 10.31
Dave: Markets have (correctly?) reset valuations this year, to better reflect business fundamentals
Source: Strategas as of 11.02.2022
John Luke: and it’s showing up in the reduction of FANG dominance
Data as of 11.01.2022
Dave: and outperformance by US-centric Large Caps
Source: Raymond James as of 10.31.2022
John Luke: Consumers remain flush, with deposits in checking accounts skyrocketing
Data as of 11.01.2022
Dave: yet economy-wide money supply has been collapsing
Data as of 10.27.2022
Dave: Pundits remain fixated on the terminal rate and peak yields, but sometimes those peaks have come later
Source: Strategas as of 11.02.2022
John Luke: Wednesday was an all-timer for worst post-Fed market reaction, not helping Chairman Powell’s reputation with equity investors
Derek: No way around it, 2022 has been rough for even the most experienced bond funds
Source: Mutual Fund Observer as of 10.31.2022
John Luke: and the Fed has shown no signs of taking their foot off of the rate pedal
Source: Bianco as of 11.03.2022
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