50 bps … (TWTW – Mar 21-25, 2022)

50  bps … at some  point could be in the cards … As this week, the US FED’s Jerome Powell suggested inflation is too high (or something to that effect), Bullard last week wanted 50 bps and not the 25 the market cheered; and the Bank of Canada’s Deputy Governor Sharon Kozicki suggested that monetary policy makers are prepared to act forcefully … => click HERE!

There we have it. Question: will they act as forcefully as they always seem to when the shit hits the fan? Because if they did (do, which they likely won’t …) the shit could … also hit the fan …

Last week I wrote that the significant rebound witnessed looked to have been an oversold / high beta rebound => click HERE!

This week’s action seems to validate that notion …

Weekly performance: Factors; Sectors, and Themes:

  • It likely came as news to some in the past week, that ESG could mean Russian Energy exposure, but NOT Canadian energy exposure … How’s that working out? Click HERE!

  • tech giving back some of last week’s strong gains;
  • Energy and materials reasserting leadership …

  • Was just reading headline suggesting Cathie Wood had just sold a sizable number of Tesla shares; ARKK still struggling from week to week … by the looks of it …
  • Clean Energy’s strong week: Actual Energy leads = rising awareness that Clean must be ramped up/prioritized strategically = stocks of companies involved there doing well?
  • Security = US warning of imminent cyber attacks presumably leading to investors missing out … deciding they must consider this essential …

 

YTD performance: Factors; Themes and Sectors:

  • the factors picture remains consistent: Canadian equities doing “relatively” well, Dividends; Value, Fundamentals, and even min vol are … besting it!

 

  • All themes still cheaper than entering 2022 …
  • Relative performance likely “informative” as far as how investors positioning for what they see “better positioned” or more “challenged” …

 

 

 

  • Leadership consistent: Energy; Materials; and Financials (the latter paused lately on … presumably yield curve flattening being seen as sign of recession on the horizon …

 

News / Noteworthy:

NATO – Meeting this past week to tighten the screws on Russia … STILL, no NATO membership for the Ukraine, and no NO FLY ZONE

LIB/NDP “Coalition” – Something rumored on several occasions in the past year or so … now made “official”. PM Justin Trudeau now has de facto gotten himself a Majority Government … Canadian Democracy? Where does it end …?

Mariupol – 100 or thousands of civilians hostage to Russia’s aggression, and artillery pounding … The WEST does need to engineer airlifts to the besieged city => click HERE!

Oil and Gas – Canada … finally looking for more production … => click HERE!

Does this mean a more industry friendly government? Or is it just the usual “posturing” … and make you feel good announcements from the Liberals: yes, FN will get clean water; yes we are sending weapons (expired one?) to support the Ukraine … and yes we support NATO (have we met our financial commitments) … Questions and more questions …

Other this past week: You might as well face it … ESG Test time => click HERE!

Have a great week-end!

stay safe 🙂