Charts of the Week
Struggling Financials
June 27, 2018
Bank stocks have extended their record losing streak to 13 consecutive days.
Bank stocks have extended their record losing streak to 13 consecutive days.
Updated polls and odds on the midterm election
A look at AAA yields since 1913
Interest in the transportation of goods and materials remains strong, even following trade war rhetoric and slowing consumer activity. Nonetheless, trucking and maritime industries appear susceptible to drawdowns given sensitivities to trade uncertainty and rising fuel costs.
More eyes than usual will be watching Bank of Canada Governor Stephen Poloz this afternoon. After signaling a July rate hike, a series of economic misses, persistent infrastructure challenges and trade tensions have left the Bank's scope to tighten policy in doubt.
The pain in financials continues. And while the flattening U.S. yield curve is certainly one reason for the slide, financials worldwide are doing worse than the U.S. banks.
Today's topics include the target funds rate, the problems with ETFs, business confidence, the yuan's slide, bitcoin, ETF fees, Iranian crude oil sanctions and predictions of doom and gloom.
Investors are no longer seeking intermediate to long-term U.S. treasuries during period of turmoil, but turning heavily to cash equivalents. Short-term governments are accruing 33 cents for every $1 of buying across major asset classes. Long-term yields are stuck in limbo until inflation and wage pressures truly brew and/or economic data outside the U.S. rebounds from a Q1/Q2 retreat.
Disruptions in Libya are old hat, but another major outage in Canada will be a windfall for some U.S. shale producers.
Back in May, we highlighted how the stock market continues to coil around a 10% without recovering to a new high. We are now 107 trading days since the late January peak. Only 1994/1995 correction went longer without turning into a full-blown bear market (20+% correction). The longer the market goes without recovering to a new high the more we fear the oldest story in finance is still playing out. The Fed is at risk of hiking too much, inverting the curve and sending the stock market lower.
New Way To Measure Inflation? Bloomberg.com – Fed’s Bostic to Hear Case for Excluding Housing From Inflation Paper says home prices make Fed policy look easier than it is Advocacy group will present findings to Bostic on Thursday Federal Reserve Bank of Atlanta President Raphael Bostic will hear the case for excluding housing from measures of… Continue reading What We’re Reading