Wall Street is turning less negative on China stocks
Source: Daily Compounding
Great observation by Dr. Michael Stamos, CFA - Head of Global Research & Development of Global Multi Asset Department at Allianz Global Investors
-> "On days when bonds were up, stocks tended to go up as well. When bonds fell, stocks managed to stay at least flat. Overall it was a pretty nice environment for equity investors. Lets hope this doesn't turn into a high-correlation-when-markets-are-down type of environment".
Stocks, bonds and cryptos rally following soft US jobs data.
Hiring slows to 175,000 jobs in April way below the forecasted 240k. This is the lowest figure since Oct 2023’s +165k. Household survey came in below forecasts as well with unemployment rate rising to 3.9% from March's 3.8%. Wage growth slows to 0.2% MoM vs 0.3% expected. Note that 0.2% is consistent with 2% inflation. Source: Bloomberg, HolgerZ
One of the most important chart in the asset allocation decision process:
Stocks vs. long duration US Treasuries. The trend is your friend Source: J-C Parets
The correlation between tech stocks and treasuries is now as positive as it was during the peak of the tech bubble in early 2000.
This issue strikes at the heart of conventional 60/40 portfolios, as the risk of overweighting these two asset classes has significantly increased. Source: Tavi Costa, Bloomberg, Crescat Capital
Where did all the stocks go?
Since the late 1990s, the number of US publicly traded companies has plunged from just over 8K in 1996 to about 4.6K in 2022. (It’s bounced back a bit more recently.) Source: Quartr
China stocks: still a long way to come back to the top...
Source: Bloomberg
Chinese tech stocks are up 10% this week, set for best week since the reopening rally in late 2022 as things stand.Clone)
Source: David Ingles, Bloomberg
