An important development for portfolio construction: bonds and equities are negatively correlated again.
Source: Bloomberg, Alessio Urban
Growth vs Value: a clear trend shift since July
Source: Mike Z., Goldman Sachs
Modi's budget could send Indian stocks higher
Source: Bloomberg 3 July 2024
TS Lombard: "Our analysis of past volatility bouts shows that equities take 4-5 weeks, on average, before a sustained recovery begins.
Markets tend to rebound on oversold conditions such as the current ones, but investors often sell into that strength, which can lead to a relapse. This is what happened, for instance, in 2018, an episode that bears strong similarities to the current one." Source: TS Lombard, The Market Ear
You might wonder why gold is down in a day like today?
diversification does not always work. When margin calls happen everything gets liquidated...
For the history books -> This was the worst day for Japan’s Nikkei stock index since the Black Monday crash of 1987, down 12.4%.
Source: Trading View
JUST IN 🚨: Robinhood suspends 24-hour trading market
Source: Barchart
Japan Equities Crash, how significant?
Nikkei 225 lost 20% or more within a 3-week period? 1. 1990: -21%, (February 14 - March 7), asset price bubble plunge in Japan. 2. 2008: -23%, (September 26 - October 16) post the Lehman collapse. 3. 2013: -21%, (May 22 - June 13), economic stimulus panic. 4. 2020: -23%, (February 21 - March 13), the COVID pandemic panic of 2020. Source: Lawrence McDonald, Bloomberg
