griffintattoo

griffintattoo

In late 2019 investors began to take on more risk in their portfolios. At the onset of the pandemic, the FED provided unprecedented liquidity to the markets. This boosted investor confidence and equities went on a massive bull run. In the current macroeconomic environment, risk aversion is back and equities have fallen from their peaks. The relationship...

griffintattoo

Have equities fallen out of favor with investors? The relationship between the S&P 500 index and the yield on 10Y US Treasuries is charted below. As treasury yields rise, more portfolios may allocate funds to these essentially riskless instruments. A ratio of 1000 would be achieved with a 3,750 S&P index level and a 3.75% yield which seems very plausible before...

griffintattoo

The Nasdaq 100 has outpaced the Dow Jones Industrials for quite some time now. It appears that the relationship between the two indexes is reverting to the channel that it has traded in since coming out of the 2008 recession. It would appear that ETFs that track the Dow Jones index or industrial sectors of the economy may offer the best opportunity to realize...