Clear and Convincing … what the FED wants to see in terms of inflation coming down …
While the latest FED minutes reinforced the notion that a succession of 50 bps are on their way, it also suggested the possibility of a pause – should incoming data suggest that inflation pressures are abating. In other words … EVEN MORE data dependent than we’ve ever been …
That said, on balance, clearly the focus remains on the FED realizing that having been caught badly behind the 8 ball, they have NO CHOICE but to voice strong determination to right the situation in order for inflation expectations not to become entrenched in market participants’ minds.
the ECB – according to Lagarde in no rush to raise rates.
Davos – Soros suggesting that Europeans have some leverage against Putin, as the Russian dictator, while using nat gas a a weapon – shutting down supply to several nations thus far … has got one inherent problem to face: an inability to redirect flow to other customers, respectively storage constraints at their end. Good point – and hopefully something that serves to improve the pricing situation.
SNAP – Company’s stock got hammered this past week, following disappointing results, causing broad weakness across SM stocks.
Canadian banks – Q2, 2022 reporting season underway. Last hurrah before more difficult quarters ahead, should economy soften, respectively higher rates take a bit out of Real Estate and harm consumer? RY: $ 4.25 Billion; TD: 3.81 Billion; Scotia: $2.75 Billion; BMO $4.76 Billion; National: $893 Million; CIBC: $1.65 Billion.
National Bank – talks about RE correction underway => click HERE!
PCE inflation – latest reading serving to reassure markets => Click HERE!
Overall – strong bounce after 8 weeks of a market correction … a sharp bounce in an ongoing bear market? How much longevity will the bounce have, respectively when do we resume to the downside … Interesting summer in perspective …
Latest weekly numbers: Sectors; Thematic; Factors; Regions:
- Strong across the board rebound this past week on the part of Technology in particular (NOT In Canada …), with interestingly, Canadian Energy also up strongly
- Across the board rebound in Thematic space as well – how long for? how far does this go from here?
- Value and Fundamental continuing to post stronger results than broad Canadian exposure.
- Dividends lagging a bit this past week
- hardest hit = larger bounce … US, and by extension world
YTD numbers to May 27, 2022: Sectors; thematic; factors; regions:
- Energy continuing to outpace every other sector and exposure
- a long way to break even … and unlikely we’ll get there any time soon … but nice reprieve …
- With Canadian Energy continuing to lead, value and fundamentals poised to continue outperforming traditional market cap
- Overdue bounce … how long for; how much higher, if at all?