🧠ON INVESTORS’ MIND
Markets concluded 1Q24 on a high note. In relative terms, risk-on strategies attracted the most investment flows, along with fixed income. The rally has broadened to smaller caps and rate-sensitive companies.
📈CHART OF THE WEEK
Federal deficit is apparently getting structural.
🌍MARKET NEWS
Inflation landing
Core PCE price Index rose 2% QoQ for 4Q23 (vs 2.1% expected, and 2.1% prior) back to a growth trend last seen in 4Q20 before the inflation spike in 2021 and 2022. This moderate price increase even took place as GDP grew 3.4% in 4Q23 (vs 3.2% expected and 3.2% prior). If it quacks life soft landing, and walks like soft landing...it is probably soft landing
Investment flows
Year-to-date 2024, alternatives is where the action took place. As ETF got approved for Bitcoin, the new asset class took home $14bn, with iShares IBIT representing the bulk of it. Risk-on specialty strategies also had inflows well above their relative size, with 2x-long Nvidia typically flavor of the moment. Flows were also disproportionately allocated to fixed income, across an array of US sovereign and corporate bonds.
Corporate digest – all about the consumer
Big tech giants are under scrutiny from regulators in the US and Europe. Apple, and Alphabet for abuse of leadership positions in its appstore, and Meta for abusive use of consumer data. Visa and Mastercard capped credit-card swipe fees in America for retailers.
🤓MARKET DATA as of 28Mar24 (29th was closed for Good Friday)
🔮WEEK AHEAD
•Manufacturing data from S&P and ISM on Monday
•Factory and good orders on Tuesday
•Services PMI and ADP employment on Wednesday
•Jobs claims on Thursday
•Nonfarm payrolls on Friday
That’s all for now !
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