Inside Markets — Rotation
The rotation out of mega-cap Tech and into YTD underperformers will likely continue for the next couple of weeks.
Inside Markets — Momentum Reversals
The recent rally in equity markets in response to a peak in bond yields is normal/expected.
Inside Markets — Weakening Labor Markets
Combining relatively subdued initial jobless claims with sharply higher continuing claims suggests that companies have curtailed hiring activity, while stopping short of enacting large-scale layoffs thus far.
Inside Markets — Goldilocks
Yesterday’s dovish Fed comments, small uptick in consumer confidence and better-than-feared early holiday shopping trends has started early rotation into cyclical equity groups like banks, REITS, autos and housing.
Inside Markets — Month-end Rebalancing
Month-end rebalancing dynamics are in play with pension funds better to buy bonds given performance differentials.
Inside Markets — Soft Landing vs Recession
A US soft landing in 2024 is the prevailing narrative with risks skewed toward a potential recession.
Inside Markets — January
A recent sell-side report suggests that crowding across hedge funds has reached a record high with the average fund holding 70% of its long portfolio in its top 10 positions.
Inside Markets — Crowding
A recent sell-side report suggests that crowding across hedge funds has reached a record high with the average fund holding 70% of its long portfolio in its top 10 positions.
Inside Markets — Performance Chasing
Last week’s cooler-than-expected CPI print increased conviction that the Fed is done with its hiking cycle, resulting in equity upside that triggered CTA moving average buy signals into a strong seasonal period.
Inside Markets — Yield Curve
We expect 10-year yields to remain above our 4.48% bullish inflection target for the remainder of Q4.