Greetings,
Rates: The 10-year Treasury yield has already deviated from its typical post-Fed cut path. A major factor this year has been resilient economic growth and overly aggressive rate-cut expectations.
Equities: The S&P 500 risk premium (forward earnings yield minus the 10-year Treasury yield) has turned negative for the first time since 2002, indicating frothy valuations in the US stock market.
The United States: This chart illustrates the changes in CPI components for October.
Market expectations for a December Fed rate cut have risen, with the probability approaching 90%.
Cryptocurrency: Bitcoin and gold have diverged after the US election.
Commodities: This scatterplot illustrates the correlations of commodity markets with the S&P 500 and the US dollar.
Alternatives: The chart below shows the current allocation of institutional investors across major alternative asset strategies.
Food for Thought: Top 10 prescription drugs in the US:
Edited by William Villacis
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