The 10-year note yield is now down ~35 basis points in just 5 days
This is the biggest pullback in treasury yields since the October 6th high. Let's keep in mind that it is not only due to a shift in Fed expectations, but rather a shift in US Treasury borrowing. As the US Treasury ramps up issuances of short-term debt, long-dated bonds are falling. However, higher for longer Fed policy seems to be setting a floor on this pullback. Source: The Kobeissi Letter
EUROZONE DEBT & GDP
Source: WinfieldSmart, The Daily Shot
Hedge Funds were quite short going into November
Source: Markets Mayhem, GS
Apple Earnings:
While the numbers were mixed, with revenue of almost $82 billion coming above expectations thanks to strong service revenue offsetting iPhone print and a miss on Products, Macs and wearables, what the market did not like (again) is that this was another quarter without revenue growth and the 4rd consecutive quarter of annual revenue declines: the first time for AAPL since 2001. Here are some key number from FY Q1 2024 Apple: • Revenue -1% Y/Y to $89.5B (in-line). Services +16% Y/Y to $22.3B. Products -5% Y/Y to $67.2B. • Operating margin 30% (+3pp Y/Y). • EPS $1.46 ($0.07 beat). • Returned $93B to shareholders in FY23 ($78B in buybacks and $15B in dividends). Source: App Economy Insight, www.zerohedge.com
Interest costs as a share of US corporate profits are near the lowest levels in 40 years
This is partly because many companies have locked in long-term financing at low rates. This has kept profit margins elevated. Maybe companies are better to manage their debt schedule than the US Treasury... Source: The daily shot, Lance Roberts
This sweet spot where you have "pretty solid" companies with ROE of 10-20% and price-to-sales ratios under 1.0 is virtually non-existent in the US
Only 20 companies in the S&P 500 fit that profile. In Japan, such companies are one-sixth of the Nikkei 225 - source: Jeff Weniger
SEC Chairman is reviewing up to 12 spot Bitcoin ETFs for approval
Here's the full report: https://lnkd.in/eMfBXxsY Source: Bloomberg Intelligence, Bitcoin Archive
Annualized Total Returns over the last 7 years...
US Stocks: +8.8% US Bonds: -0.3% US 60/40: +5.4% Source: Charlie Bilello
