Tag Archives: Markets
Markets
Equity Market Concerns
Equity Market Concerns
Posted By Alex Malitas
The extreme pace of global central bank tightening is causing turmoil across all financial markets. Much of the focus is on the "liquidity hole" in the bond market, however equity markets are showing cracks. ... Read More
Markets
Foreign Revenue Stocks Underperform
Foreign Revenue Stocks Underperform
Posted By Greg Blaha
As the dollar continues its relentless rise in 2022, stocks in the S&P 500 most heavily dependent on foreign revenues have underperformed stocks focused on U.S. revenues.... Read More
Markets
Updating Market Sentiment and Positioning
Updating Market Sentiment and Positioning
Posted By Alex Malitas
2022 has been a year of asking, "could it get any worse?" With central banks raising rates at a historic pace, financial markets are feeling the pressure. The S&P 500 has fallen roughly 24%, but signs of panic have yet to appear even as large traders abandon positions. ... Read More
Markets
The Case for Higher Rates From Here
The Case for Higher Rates From Here
Posted By Jim Bianco
As the Fed hikes and short rates increase, long rates should get dragged higher. Economic data would need to weaken meaningfully to change this outlook.... Read More
Markets
The Post-Pandemic Bull Has Been Reversed
The Post-Pandemic Bull Has Been Reversed
Posted By Jim Bianco
The S&P 500 Total Return Index, adjusted for inflation, sank below the last bull market peak of February 19, 2020.... Read More
Markets
Global Financial Market Capitalization
Global Financial Market Capitalization
Posted By Alex Malitas
Globally, stocks' and bonds' combined market caps have declined over 15%.... Read More
Markets
Housing’s Deceleration Continues
Housing’s Deceleration Continues
Posted By Greg Blaha
Redfin's alternative measures of the housing market continue to show a deceleration in the crazy conditions of the last year.... Read More
Markets
What’s Missing From the Fed’s Argument
What’s Missing From the Fed’s Argument
Posted By Jim Bianco
The Fed has been explicit in their goal to continue raising rates, but the markets are still hoping for a pivot. Behind this tension is a disagreement about the long-term outlook for inflation. Is it persistent?... Read More
Markets
The 10-Year Note Goes Streaking
The 10-Year Note Goes Streaking
Posted By Jim Bianco
10-year yields are up nine straight weeks, the longest such streak in over 28 years. History shows this type of rise in yields typically proves detrimental for the stock market.... Read More
Markets
Bond Market Trouble
Bond Market Trouble
Posted By Jim Bianco
The bond market suffers from high volatility, illiquidity, stress, and record losses. These problems are spilling over into the currency and stock markets. ... Read More
Markets
Buy-and-Hold Investors Keeping the Market Afloat
Buy-and-Hold Investors Keeping the Market Afloat
Posted By Alex Malitas
Equity markets have yet to show full panic even as macro headwinds grow. With flows and volatility showing no signs of capitulation, we are unlikely at a bottom until positioning shifts.... Read More
Markets
What Is Breaking?
What Is Breaking?
Posted By Jim Bianco
The labor market is not showing signs of faltering, which is only adding to fears the Fed will continue hiking. Stress is showing in the markets, however.... Read More
Markets
Chairman Powell Forecasts Interest Rates
Chairman Powell Forecasts Interest Rates
Posted By Jim Bianco
In Chairman Powell's press conference on Wednesday, he said the Fed would like to see interest rates "across the entire yield curve" move above the inflation. If positive real rates are the goal, rates have to move another 100 basis points higher.... Read More
Markets
Will a Higher Terminal Rate Result in Higher 10-Year Yields?
Will a Higher Terminal Rate Result in Higher 10-Year Yields?
Posted By Jim Bianco
As hawkish talk continues, the forward curve is pricing in a higher terminal rate. This pushes up the 2-year yield. If the yield curve holds its current spread, the 10-year should also shift higher.... Read More
Markets
The Pressure Is on the BoJ
The Pressure Is on the BoJ
Posted By Greg Blaha
The pressure is back on the Bank of Japan as 10-year JGB rates hover around their preferred upper limit of 0.25%.... Read More
Markets
The Correlation Between Stocks & Bonds
The Correlation Between Stocks & Bonds
Posted By Greg Blaha
As inflation remains at elevated levels, the correlation between stock and bond returns is a telling sign on investors' thinking.... Read More