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
Corporate insiders are more bearish than they have been in at least one decade
Source: InsiderSentiment.com
Reversion to the meme...
Source: Charlie Bilello
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
Dow is only down 190pts so far this weekend.
Doesn’t seem too bad yet. We’ll see what futures say tomorrow morning. https://lnkd.in/eD7nnP5k
