Enjoying the Volatility? (TWTW June 20-24, 2022)

Enjoying the Volatility?

This past week – lucky for equity investors … – turned out to be a tad less painful than the prior one …

The moves, as anyone paying attention would know, have recently become increasingly stomach churning…

Room for error seems to be cropping up everywhere, and as shown in the past week’s performance results, as well as the year-to date update, areas formerly leading (Energy and Materials in particular) have recently been hit rather spectacularly …

What is all of this saying and suggesting? Well, talks and articles about inflation and recession are literally to be heard, read, far and wide, non-stop. I know as I am writing this from Switzerland, where French TV channels are filled with inflation worries, consumers expressing shock at spiking food and energy prices, and so on. As for articles you may read today, there are filled with rising recession risk, and dire predictions of Central Banks having NA (No Alternative) than to hike aggressively, to tamp down inflation (which … btw they caused, and WE caused, let’s be honest … not just the homicidals doing of one Vladimir Putin …)

Anyways, here we have it, dramatic swings up and down along the path of a bear market showing little signs of retiring any time soon, in my humble and humbled opinion.

Be safe out there 🙂

weekly performance to June 24, 2022 – Sectors; Thematic; Factors; Regions:

  • Recent “leadership” hit of late = latter stages of sell off? OR widening Bear?

  • Broad-based thematic space rebound after rather pronounced and nasty sell-off? signs of better days ahead? or just a breather ahead of further declines?

  • Factors … the harder they fall … the more they rebound?
  • “rare” Growth segment outperformance
  • Value; Fundamental; AND small caps “hurt” by energy content

  • Bouncing S&P after prior week’s nasty sell -off
  • TSX … FLAT … despite nasty energy/materials correction …

YTD Performance to June 24, 2022 – Sectors; Thematic; Factors; Regions:

  • Energy – still significantly ahead ytd … BUT recent sell-off/correction (profit taking for some?) based … presumably on rapidly increasing recession worries has, nonetheless significantly reduced the sector’s spectacular 2022 showing up until about two to three weeks ago…

  • Thematics “repricing” … still underway? or mostly done?

  • Factors (those that were outperforming that is) relative strength correction = latter stage sell-off?

  • With “BEAR” not exactly sparing many … should you and I look at “chilling” with some Japan exposure?