Inside Markets

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.

Month-end rebalancing dynamics are in play with pension funds better to buy bonds given performance differentials.

A US soft landing in 2024 is the prevailing narrative with risks skewed toward a potential recession.

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.

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.

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.

We expect 10-year yields to remain above our 4.48% bullish inflection target for the remainder of Q4.

The pullback in bond yields has been the main driver behind the week-long relief rally in equities.

The pullback in bond yields has been the main driver behind the week-long relief rally in equities.

The pullback in bond yields has been the main driver behind the week-long relief rally in equities.