Please use the AGA Weekly Chartbook link below to access this week’s Chart Book.
Financial Market Update:
- Equities sold off this week while, US Treasuries, Gold, and the US Dollar rallied
- Credit Spreads, including Mortgage Backed Securities, remain at historically tight
- Volatility, Financial Market Stress, and 3M Yields have increased over the last 2 weeks
- The US Yield Curve continues to steepen, suggesting economic growth and incentivizing bank lending
- UST 30 year yield dropped this week, finishing at 3.92%, just below 12 month highs
- UST 10 year yield moved slightly lower this week, closing at 2.99%
- Inflation expectations have broken out to 6 month highs
- Investment Grade Credit Spreads continue to narrow, reaching new 8 month lows
- Emerging Market Bond Spreads are at resistance, and are struggling to break below 325 bps
- S&P 500 and MSCI EM 12M forward earnings growth is forecasted to be around 12%, compared to 43% for the MSCI EAFE
- The US Dollar strengthened against the Euro and weakened against the Yen this week
- Commodities are attempting to breakout of a 2 year downtrend
- Gold rallied this week, closing at $1237/oz. and holding support at $1190/oz.
disclosure: The opinions expressed in this Weekly Chart Book report are those of the author. The materials and commentary are strictly informational and should be used for research use only. This bulletin is not intended to provide investing or other advice or guidance with respect to the matters addressed in the bulletin. All relevant facts, including individual circumstances, need to be considered by the reader to arrive at investment conclusions that comply with matters addressed in this bulletin. Charts and information used in this report are sourced from Bloomberg.