The Daily Shot Brief – March 27th, 2018

Greetings,

 

 

The United States: Is the FOMC’s projection for the Fed Funds rate at the end of 2020 way too optimistic? Many economists and the market do not expect rate hikes during that year because growth is likely to slow by then. Some economists even expect the Fed to cut rates in 2020.

Source: Bloomberg, Capital Economics

 

Equity Markets: Valuations of US energy companies are approaching those of the broader market.

Source: Credit Suisse

 

Rates: Treasury implied volatility (MOVE) has been low relative to the US stock market volatility (VIX).

Source: Bianco Research

 

Energy Markets: The crude oil volatility skew is now ‘skewed’ in the other direction amid demand for call options.

Source: Credit Suisse

 

The Eurozone: Is the Eurozone at risk of deflation as a result of a strong euro? Here is a comparison to Japan in the 1990s.

Source: @jsblokland

 

Global Developments: This chart shows average investor portfolio allocations by country. US investors seem to be the most aggressive.

Source: Natixis Investment Managers Portfolio Research & Consulting Group’s 2017 Global Portfolio Barometer

 


Food for Thought: The US has a new product to export: human semen.

Source: WSJ.com, h/t Paul Menestrier; Read full article

 

 

Edited by Joseph N Cohen


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Thanks to Josh Marte (@joshdigga), Matt Garrett (@MattGarrett3), Joseph Cohen (@josephncohen), Ycharts.com, S&P Global, and Moody’s Investors Service for helping with the research for the Daily Shot.

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