This is NOT the start of a new bull market warns Morgan Stanley's Chief Investment Officer Mike Wilson who believes that a Fed Pause may actually reawaken the bear pic.twitter.com/tujwbeziPc
— Barchart (@Barchart) June 12, 2023
One of the most misunderstood concepts in finance is that you need 0% rates to have animal spirits run loose in markets.
That’s not necessarily the case.
The 2000 dot-com and 2007 housing mania happened with 5-6% Fed Funds.
It’s all about FOMO and your neighbor getting rich.
— Alf (@MacroAlf) June 13, 2023
Biggest standout in fund manager positioning is the overweight to bonds and underweight to equities…
This type of positioning is only going to work in 2 scenarios:
1. Bonds rally, stocks fall
2. Bonds rally, stocks rally, but bonds do more pic.twitter.com/ekJzd4YGVq
— Callum Thomas (@Callum_Thomas) June 13, 2023
🇬🇧🇩🇪 GAP BETWEEN 10-YEAR UK AND GERMAN BOND YIELDS EXCEEDS 200 BPS FOR FIRST TIME SINCE SEPTEMBER'S MINIBUDGET CRISIS pic.twitter.com/za118Iv53E
— PiQ (@PriapusIQ) June 13, 2023
US junk loan defaults surge as higher interest rates start to bite
Us Consumer Price Growth Slowed Last Month, Though Underlying Inflation Measures Stayed High
Consumer prices in the United States cooled last month, rising just 0.1% from April to May and extending the past year’s steady easing of inflation. At the same time, some measures of underlying price pressures remained high. Measured year over year, inflation slowed to just 4% in May — the lowest 12-month figure in over two years and well below April’s 4.9%…
Beware This Stock Market Rally Because It’s Reminiscent of What Led up to the 2008 Crisis: JPMorgan
Investors should be wary of the ongoing stocks rally because it doesn’t reflect looming economic risks, and is reminiscent of the months that led up to the 2008 financial crisis, according to JPMorgan Asset Management’s chief investment officer.