The Market in Pictures, November 4

by | Nov 4, 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:


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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