Yield Curve
Executive Summary Refreshing Our Tactical Trade List
A Post-Invasion Reassessment Of Our Tactical Trade Recommendations…
Executive Summary An inverted yield curve is a reliable recession indicator. Inversions of the 3-month/10-year Treasury slope and the 3-month/3-month, 18-months forward slope both provide more timely recession signals than inversion of the 2-year/10-year Treasury slope. An inverted yield…
Executive Summary Tracking Inflation In 2022
Tracking Inflation In 2022…
Executive Summary For the Fed, maintaining its credibility with a long sequence of rate hikes that does not crash the economy, real estate market, and stock market is akin to the ‘Hail Mary’ move of (American) football. The likelihood that the Fed completes the straight sequence of eight rate…
Executive Summary The Fed is in a tough spot. On the one hand, rising long-dated inflation expectations will incentivize it to tighten more quickly. On the other hand, the flat yield curve and poor risky asset performance point to a heightened risk of recession if it tightens too aggressively…
Executive Summary On a tactical (3-month) horizon, the inflationary impulse from soaring energy and food prices combined with the choke on growth from sanctions will weigh on both the global economy and the global stock market. As such, bond yields could nudge higher, the global stock market…
Highlights Chart 1A Tough Balancing Act For The Fed
A Tough Balancing Act For The Fed…
Executive Summary We look at the Ukraine crisis in the broader context of shocks, what we can learn from them, and how we can incorporate them into our strategy for investment, and life in general. Our high-conviction view is that the Ukraine crisis will be net deflationary, because the…
Executive Summary US biotech is trading at its greatest discount to the market. Ever. Much of biotech’s underperformance is due to transient factors: specifically, the sell-off in long-duration bonds; the focus on delivering a Covid vaccine; regulatory concerns; a drought in M&A; and a…
Executive Summary The recent 26 percent overspend on durable goods constitutes one of the greatest imbalances in economic history. An overspend on goods is corrected by a subsequent underspend; but an underspend on services is not corrected by a subsequent overspend. This unfortunate…