An uneven economic recovery vs. the very synced economic has many benefits

I am still puzzled would global economists argue for the benefits of synchronized global recovery…

An uneven economic recovery vs. the very synced economic has many benefits:
1. it allows investors to rotate money globally
2. it doesn’t overburden global sectors with high peaks of productions and steep drops when the whole world goes into a deep “synchronized” recession. Think commodities. Nobody needs crude oil oscillating between $20 and $200 but a healthy and relatively stable $80 or so, would be welcomed by consumers, corporations and politicians….

An uneven economic recovery vs. the very synced economic has many benefits

Don’t miss the high-confidence calls from TenViz

Too many signals can be overwhelming and not easy to implement into the process, even the well-timed signals. 

So, some of our clients asked us to add a confidence/upside indicator to help them focus on the most favorable setups.

We recently enhanced our tools with this new feature – the Signal Strength

Now, clients can sort signals for stocks by the degree of confidence: top 20%, 40%, 80%.

Have you checked your Signal Strength Meter?

More details? Compare plans here

Don’t miss the high-confidence calls from TenViz

Famous growth investor Cathie Wood

Regarding the famous growth investor Cathie Wood – some people admire her, some think she was just lucky in 2020.

Who knows, but one thing Cathie clearly displays is a remarkable persistence and faith in her views.
Here is her short story of multiple tries and fails (forgive my loose interpretation of her bio from Wikipedia):
– 1977 worked without much glory at Capital Group
– 1980 tried her luck with Jennison Associates
– 1998 she launched a hedge fund Tupelo Capital and failed…
– 2001 she was a CIO at Alliance Bernstein on their Global Thematic strategies and failed to outperform…
– 2014 started the Ark Invest and now at the age of 65 the world knows her name…
What a remarkable story of relentless perseverance in pursuing her dreams and great lesson to us all from Cathie!

Famous growth investor Cathie Wood

What is a difference between a CEO of an established company vs. a CEO of a startup?

A CEO of an established corporation has to say the right things (to appease politicians and stakeholders) and do very little new (staying the course is, usually, the best strategy).

A CEO of a startup can say many unconventional things (remember Tweets from Musk?), yet he has to do the right things (by constant trial and error) figuring out the right product/market/marketing…
 

What is a difference between a CEO of an established company vs. a CEO of a startup?

Utilities are rate-sensitive and offer a lot of “trading opps”

Our Related Movers tool evaluated that Utilities lag Rates about 58% of the time by 8-10 days on average. But Utilities might lead to Rates, it happens only 16% of the time.

Below there is a lead/lag historical chart between Utilities (XLU) and Rates (10Y US).

Utilities are rate-sensitive and offer a lot of “trading opps”, which is why one of our clients asked us: “Could TenViz quantify this dependency? When it works and when it doesn’t work?”

The red areas show the periods of time when Utilities lag Rates.

The green areas show the periods of time when Utilities lead rates.

What dependencies want you check next?

Utilities are rate-sensitive and offer a lot of “trading opps”

China orders 34 internet firms to curb monopolistic behaviour

China orders 34 internet firms to curb monopolistic behaviour…

Read again with a smile!
How can 34 firms act like monopolies, even if they serve 10 different segments that is about 3-4 competitors per segment, which looks fairly competitive to me.
Must be something else behind that crackdown….

China orders 34 internet firms to curb monopolistic behaviour

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 to track short-term lead/lag correlations between asset classes.
How would you answer this question?

Every 5th Grader knows Rates always lead Utilities. What could be other possibilities?

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 

Inflation expectations keep going higher

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 you guys see a better fundamental explanation?

TenViz tools – PREDICTIVE ANALYTICS FOR INVESTING
https://lnkd.in/d_gcb6m

Russell 2K is down about 9% while S&P500 is effectively flat and High Yield is holding up!

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 similar to Tech!
 

Housing and construction stocks are slowing down after their massive runs.