"The stock-bond correlation switch is the ultimate diversification regime shift."
"You don't have as great a need for alternatives when the correlation is negative. Investor search for diversification should be at a heightened level." Source: BofA, Darren
As shown by Jeroen Blokland >>> The Ishares 20+ Year Treasury Bond ETF is down 48% since April 2020.
This means investors have realized a negative return of 15% annually on long-duration bonds over the last four years. Moreover, this 'return' was realized with structurally higher volatility and, on average, a positive correlation with stocks. It also means the market for long-duration bonds has to double(!) to erase losses. Source: Jeroen Blokland
$BABA Alibaba free cash flow vs share price
Source: KoyfinCharts
Is the US stock market becoming THE world stock market?
Source: Sam Ro
Equity Risk Premium (the benefit of owning stocks over treasuries) has fallen to its lowest level in 22 years
Source: Barchart, Bloomberg
CTAs will dump billions worth of stocks over the next week in EVERY SINGLE SCENARIO warns Goldman Sachs
Source: Barchart
US big tech revolution steamrolling emerging markets equities in one chart.
What would make this trend reverse? Source: BofA, Michel A. Arouet
BANK EARNINGS >>> Bank of America $BAC stock is down -4% today after reporting earnings down -18% yoy.
$BAC Bank of America Q1 FY24. Revenue -2% to $25.8B ($0.4B beat): • Net Interest income: $14.0B (-3% Y/Y). • Noninterest income $11.8B (-0% Y/Y). Net Income $6.7B (-18% Y/Y). Non-GAAP EPS: $0.83 ($0.06 beat). CET1 ratio of 11.8%. Source: App Economy Insights
