Macro Briefing: 24 May 2024

* Crude oil drops to lowest price in over 3 months
* China has a bold plan for its housing crisis, but it’s still not enough
* Sales of new US single-family homes fell more than expected in April
* US jobless claims fell again last week, reaffirming low level of layoffs
* Chicago Fed Nat’l Activity Index weakened in April, but…
* US business activity accelerates in May via PMI survey data:

Value investing strategies still work — outside the US, reports the founder and chief investment officer of Verdad Advisers. “There’s a myopia to focusing so much on the recent experience of the US value investor community,” writes Daniel Rasmussen in the Financial Times. “This is because the story looks strikingly different internationally.” He explains: “Value suffered a similar swoon as in the US, suffering a 30% drawdown through the depths of Covid. But since March 2020, its performance in non-US developed markets has been a steady, almost linear rise. International value has even had strong performance during the ChatGPT era. The outperformance since March 2020 has been so good that the value factor now shows outperformance over three-year, five-year, 10-year and 15-year periods. The value factor is up 36 per cent in developed ex-US markets.”

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