Weekly Macro Themes - Listed companies have been able to absorb higher interest expense
Here's the topics/ideas covered in the latest Weekly Macro Themes report. This report is aimed at institutional investors, and covers a mix of macro/ideas/risks, across a global macro/multi-asset universe…
This week I covered the following topics/ideas:
1. Of Interest: Listed companies have been able to absorb higher interest expense so far by out-earning the increase, yet credible higher-for-longer risk for bond yields makes for a higher hurdle over time.
2. EM Fixed Income: Bullish given cheap valuations, improving sentiment, high real yields, promising technicals, and policy tailwinds, albeit wary of low CDS/credit spreads (and resurgence risk).
3. GSV vs ULG: Global Small Value vs US Large Growth have reached further extremes on the relative value front (very compelling strategically), however the technicals are yet to turn.
4. REITs: Neutral/mixed – sentiment extreme bearish, valuations reasonable vs long-term, cheap vs equities, but expensive vs fixed income; rising rates (+demand changes) have damaged profitability.
5. Frontier Markets: Bullish Frontier Market equities given improving technicals outlook, prospective policy pivot, cheap valuations, and potential turnaround in previous FX headwinds.
$S&P 500(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $NASDAQ(.IXIC)$ $Invesco QQQ(QQQ)$ $NASDAQ 100(NDX)$ $DJIA(.DJI)$ $GLOBAL X DOW 30® COVERED CALL ETF(DJIA)$
https://www.topdowncharts.pro/p/weekly-macro-themes-14-june-2024-d05
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