The strong outperformance of high-beta stocks shows no sign of relinquishing leadership in the US equities market this year, based on a set of ETF proxies through Monday’s close (Feb. 27).
Monthly Archives: February 2023
Macro Briefing: 28 February 2023
* UK and EU announce deal on thorny Northern Ireland border
* China’s approval of new coal plants surged in 2022, report says
* Will the clean-energy future arrive by drilling for hydrogen?
* US cyber chief says companies need to do more to boost security
* Coinbase will suspend trading of Binance USD stablecoin
* Some bosses say they’re set to replace workers with AI
* US core durable goods orders in January rise the most in five months
* Decline in Texas factory factory deepens in February
* US pending home sales rebound sharply in January:
Across-The-Board Losses For The Major Asset Classes Last Week
Sellers took a toll on all the major asset classes last week, based on a set of ETF proxies.
Macro Briefing: 27 February 2023
* If China sends lethal aid to Russia, it would incur ‘real costs’, US warns
* Moldova worries it could be Russia’s next target for a Crimea-style annexation
* US Energy Dept says covid probably came from lab leak
* Will cyberattacks on Albania, a NATO country, trigger an alliance response?
* Even uber-investor Warren Buffett wasn’t immune from market losses in 2022
* US economic data is mixed, but economists still expect recession: NABE survey
* Policy-sensitive 2-year US Treasury yield breaks out to 16-year high:
Book Bits: 25 February 2023
Jeanna Smialek
Review via The Economist
As covid-19 struck, markets were in meltdown and economic disaster loomed. The central bank swung into emergency mode, injecting vast, if not quite infinite, sums of cash into the financial system in order to avert a crisis… The actions worked a little too well. Before long, growth was recovering, markets were booming and price pressures were building. The Fed ended up having to fight America’s worst outbreak of inflation in decades—a fight that is ongoing. This sharp duality poses a dilemma for any appraisal of the Fed’s record during the pandemic… “Limitless” by Jeanna Smialek of the New York Times is a useful corrective. She provides a bracing account of just how badly things could have turned out when covid shutdowns led millions to lose their jobs overnight—and pushed the financial system to the brink of collapse.
Is It Time To Rethink Stock-Bond Allocations After Rate Hikes?
The case for raising equity allocations when interest rates were close to zero was easy. After a year of interest rate hikes by the Federal Reserve, the calculus is more complicated.
Macro Briefing: 24 February 2023
* Ukraine leader vows to push on for victory on anniversary of Russia’s invasion
* Amid questions of neutrality, China calls for ceasefire in Russia-Ukraine war
* China’s online retail spending rebound after lockdown is modest, reports Alibaba
* US regulators warn banks of liquidity risks with crypto-related deposits
* Demand is up for dividend-paying stocks as interest rates rise
* Retirement account balances down nearly 25% last year, Fidelity reports
* US jobless claims tick lower and continue to indicate tight labor market
* US GDP growth for Q4 revised down to 2.7% annual rate
* US economic activity rebounds in January, rising at strongest pace in six months:
Desperately Seeking Yield: 23 February 2023
Cash is no longer trash, courtesy of sharply higher interest rates. Trailing yields on risky assets are looking up too.
Macro Briefing: 23 February 2023
* Putin says China President Xi will visit Russia
* Fed minutes: officials remain set on more rate hikes to tame inflation
* US proposes first offshore wind auction in Gulf of Mexico.
* Several popular Chinese apps remove access to AI chatbot ChatGPT
* US home-purchase applications tumble to 28-year low
* US mortgage rates rise to highest level since November:
Early Median Estimate For US GDP In Q1 Skews Slightly Negative
The economic rebound in the second half of 2022 looks challenged in early estimates for first-quarter GDP, based on the median for a set of nowcasts compiled by CapitalSpectator.com.