Every 5th Grader knows Rates always lead Utilities. What could be other possibilities?
It’s a well-known truth that Utilities are a rate-sensitive group of stocks. Which is why one of our clients asked us: “Could TenViz quantify this dependency? When does it work and when doesn’t it work?” It’s not simple, but we can do it using one of our tools – Related Movers. This tool allows you ...
Inflation expectations keep going higher
Inflation expectations keep going higher, check out TIPS breakevens at 2.4% taking on a 5 year highs. The Fed can’t be happier but pension funds are not (inflation is a hidden taxation)! tenviz.com ...
Russell 2K is down about 9% while S&P500 is effectively flat and High Yield is holding up!
Market watchers rightfully focus on rates or earnings, but what puzzles me is why Small Caps have underperformed so much for the last 2 weeks.Russell 2K is down about 9% while S&P500 is effectively flat and High Yield is holding up!We definitely see funds outflows from Small Caps, but fundamentally it is not clear why…Maybe ...
Housing and construction stocks are slowing down after their massive runs.
That includes homebuilders, manufacturers of appliances and construction materials… Why? 1) higher rates are, obviously, a minor drag 2) these stocks had massive runs 3) also, the flight to suburbs on WFH theme might be finally over… That is a healthy thing. Have a look at the stock of Whirlpool – last 2 years were ...
Mainstream
In a predictable stupidity of the mainstream financial media, they over-communicate the earnings news about the GameStop…. Yes, that, GameStop had a massive short squeeze which resulted in Congressional hearing… But it was never about the fundamentals of the company, it was just a crazy crowd game taken to the extremes. Why to overtalk about that ...
To achieve full employment
I was listening to the Fed’s Powell and Janet Jellen’s testimony to the Congress, and I still can’t understand why we need zero rates to achieve full employment… The government rightfully mandated many client-facing businesses (restaurants, hotels, airlines) to basically shut down (to the massive benefit of WFH winners). But how would zero interest rates help ...