Weekly Market Snapshots & Data

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A Week in Perspective (04/12/21) | Overvalued Markets Can Be More Overvalued
Weekly Market Snapshots & Data Apr 12, 2021

Elevated CAPE (cyclically adjusted price-to-earnings) ratios indicating higher equity prices relative to earnings have persisted over the better part of last two decades, which raises the question of how much further can markets become overvalued.

A Week in Perspective (04/05/21) | Correlation No More
Weekly Market Snapshots & Data Apr 05, 2021

Mixing large-cap stocks and corporate bonds together to create a “diversified portfolio” is a staple of traditional asset allocation models. However, the relationship between the two asset classes continues to shift unpredictably, constantly changing the level of risk exposure.

A Week in Perspective (03/29/21) | Buybacks Spike in '21
Weekly Market Snapshots & Data Mar 29, 2021

U.S. corporate buybacks have returned to their pre-pandemic levels as economic outlook continues to climb, decreasing the need for companies to hoard emergency cash reserves.

A Week in Perspective (03/22/21) | +20% Drawdown for a "Riskless" Asset?
Weekly Market Snapshots & Data Mar 22, 2021

The Bloomberg Barclays U.S. Long Term Treasury Total Return Index is currently experiencing its largest drawdown to date, plummeting more than 20% as Long Term Treasuries continue to sell off amidst skyrocketing inflation expectations, lifting the U.S. 10 Year Treasury Yield to 1.74%.

A Week in Perspective (03/15/21) | U.S. 10-Year Treasury Yield vs. S&P 500 Index Yield
Weekly Market Snapshots & Data Mar 15, 2021

Frothy equity valuations, in addition to the recent surge in treasury yields from historical lows, have resulted in the U.S. 10-Year Treasury Yield crossing above S&P 500 Dividend Yield, similar to the market environment back in 2016.

A Week in Perspective (03/08/21) | Is Value Accelerating?
Weekly Market Snapshots & Data Mar 08, 2021

The rotation out of growth stocks and into value stocks continues to gain momentum in 2021, perpetuated higher due to concerns over rising inflation and frothy valuations in growth stocks.

A Week in Perspective (03/01/21) | Rising Yields Impact On Equity Markets
Weekly Market Snapshots & Data Mar 01, 2021

As the U.S. 10-Year Treasury Yield continues to rise aggressively, recently crossing above 1.5% last week, it is important to note that similar rising yield environments in the past 10 years have led to pauses or corrections in the equity markets.

A Week in Perspective (02/22/21) | Should HY Corp Spreads Be This Low?
Weekly Market Snapshots & Data Feb 22, 2021

Persistent levels of monetary and fiscal stimulus continue to  incentivize investors to add credit risk to their fixed income portfolios, resulting in high-yield bond spreads dropping to their lowest level since before the global coronavirus pandemic began.

A Week in Perspective (02/16/21) | Another ’00 Similarity? No Fear
Weekly Market Snapshots & Data Feb 16, 2021

The demand for downside equity protection (via put options) versus upside participation (via call options) has fallen to a 20-year low as investors continue to aggressively add exposure without hedging their downside risk.

A Week in Perspective (02/08/21) | Technicals Suggest Momentum Slowing
Weekly Market Snapshots & Data Feb 08, 2021

Market breadth appears to be waning as the percentage of S&P 500 members that are at 52 week highs has dropped significantly since its peak in November despite the S&P 500 posting new record highs.

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