Boeing cut to BAA3 from BAA2 by Moody's, outlook negative.
Source: Markets & Mayhem
Equity Risk Premium (the benefit of owning stocks over treasuries) has fallen to its lowest level in 22 years
Source: Barchart, Bloomberg
US big tech revolution steamrolling emerging markets equities in one chart.
What would make this trend reverse? Source: BofA, Michel A. Arouet
The correlation between equity market volatility and inflation expectations is at the highest level we've seen in decades.
Although the chart below doesn't extend as far back, a similar phenomenon occurred in 1973-1974 as markets faced difficulties whenever inflation reaccelerated. This is especially pertinent now, with energy prices, agricultural commodities, precious metals, copper, global freight costs, and other inflation indicators showing significant resurgence. Source: Tavi Costa, Crescat Capital, Bloomberg
Yes, this week was painful for stocks.
But putting things into perspective, equities have been more resilient to higher rates recently versus previous periods of rising rates. Source: Edward Jones
Commodities are currently undervalued vs. equities
Source: Vontobel
Equity market positioning is VERY extended (which is bad from a contrarian perspective).
As shown in the chart below, Asset Managers have built the largest equity futures position in history 🚨🚨🚨 Source: Barchart, Goldman Sachs, CFTC
Yesterday was very painful for diversified 60-40 (equities / bonds) portfolios
Source: Bloomberg
