Daily Archives: Sep 1, 2022 at 08:08 am EDT

US Stock Market Valuation Normalizes… Slowly

Newton famously stated that for every action in nature there is an equal and opposite reaction. The same can be said for the stock market, which is forever discounting the future, albeit imperfectly and sometimes with hefty and long-running doses of noise. Hold that thought as we update the numbers on the assumption that higher (lower) prices/valuations align with lower (higher) expected returns.

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Macro Briefing: 1 September 2022

* Shelling delays UN inspection of Ukraine’s Zaporizhzhia nuclear plant
* China locks down Chengdu metro area of 21 million people
* Hopes for Fed pivot fades, taking a toll on stocks
* Cleveland Fed President expects benchmark rate to rise above 4%
* China’s factory activity contracted in August, private survey finds
* Eurozone manufacturing contracts again in Aug via PMI survey data
* US imposes tighter restricts on computer chip sales to China
* Gold at six-week low amid stronger dollar and firmer outlook for rate hikes
* Risk of gold falling below $1,700 is limited, predicts Standard Chartered
* Hiring at US companies slows in August to smallest gain since January 2021:

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