JUST IN: Futures now show a 0% chance of additional rate hikes with rate cuts beginning in May 2024
Prior to today's CPI report, there was a 30% chance of at least one more rate hike ahead. Rate cuts were expected to begin in June 2024. Now, markets are pricing-in at least 4 rate CUTS in 2024. Markets are betting that the Fed is done. Source: The Kobeissi Letter
What kills bull markets
Nice visual by @safalniveshak thru Brian Feroldi
Has there been a better pairs trade than long US, short world... ever?
This relationship has generated steady alpha for a decade and a half now. Growth over value and large over small have also been excellent long / short pairs. Source: Steven Strazza
When the book on 2023 closes, extreme sector divergence will surely be considered one of the major plot points
Technology and Communication Services are each up more than 40% YTD, while five of eleven sectors are in the red on the year. Source: Bespoke
Tech relative to small caps JUST hit the highest level EVER seen This ratio is higher than even the peak of the Dot Com bubble
Source: Game of Trades
2023 has been the polar opposite of 2022:
-Worst performing areas of the equity market in 2022 (Nasdaq/Tech/Growth) have been the best performers in 2023. -Best performers from 2022 (Energy/Value/Equal Weight) have been the worst in 2023. Source: Charlie Bilello
Microsoft $MSFT has joined Apple $AAPL as the 2nd individual company that has a bigger market cap than the combined market cap of all stocks in the small-cap Russell 2,000:
Source: Bespoke
The growth rate of capital being poured into retail money market funds (MMFs) is at its highest level in several decades
Retail MMFs recently surpassed $1.6 trillion; a record high. Source: Koyfin @KoyfinCharts
