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Cash attractiveness may have peaked in 2023

Cash was an attractive, safe asset last year amid elevated rates. This week’s chart looks at why the tide may be changing.

Will a rate-dependent equity market become a headwind?

Could last year’s market tailwind turn into this year’s headwind? This week’s chart looks at stocks and rates’ tandem moves over the past year.

Equity market to remain rate dependent in 2024?

This week’s chart finds the bulk of the S&P’s returns last year came on days when rates fell. So far, 2024 has followed a similar pattern.

Despite Fed pause, financial conditions tighten further

Despite expectations for a Fed pause, this week’s chart looks at other financial conditions, which have tightened significantly in recent months.

Falling equity yields predicting too rosy a scenario?

As the equity premium has declined, stocks may not be compensating investors given today’s macro risks.

Recession or not, equity return backdrop is challenged

Stocks have seen strong year-to-date (YTD) returns, but high valuations portend challenges ahead as this week’s chart shows.

Credit offers elevated yields, attractive valuations

High yield bonds and senior secured loans may offer attractive yields and an appealing entry point compared to stocks.

In 2023, the Agg has seen little bounce-back

The Agg has lost steam with three consecutive monthly declines. This week’s chart tracks its monthly returns against the 10-year yield.

Private markets attractive in market drawdowns?

This week’s chart looks at private markets’ relatively small declines during the past two market drawdowns compared to their public counterparts.

Stock-bond correlation is quickly rising

Stock-bond correlation has been on the rise again. This week’s chart looks at the trend and how it has exacerbated the diversification challenge.
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