#149: No News is Good News

S2N Spotlight

I am travelling interstate with my family for a celebration and haven’t had the time to do meaningful research. I try to never miss a letter, so I will just share a few charts, as I have run out of time.

S2N Observations

It is good to look at the tightening cycle individually to get a sense of the cycle we have just been through (yellow).

I was looking through some of my charts, and this one stood out. I shift the Fed Funds Rate by 2 years, and I see a pretty interesting relationship with volatility.

Another interesting relationship is the dollar with the 10-year Treasury Yield.

The US yield curve has un-inverted (is that a word?). In the past this has not been good for the stock market.

The Australian yield curve un-inverted some time back in case you were wondering.

Performance Review

For those who are new to the letter, the shading is Z-Score adjusted so that only moves relevant to the symbol are highlighted. As you can see, yesterday was a big green day.

Chart Gallery

News Today

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