Michael Robbins
Summary via publisher (McGraw Hill Professional)
Whether you’re managing institutional portfolios or private wealth, Quantitative Asset Management will open your eyes to a new, more successful way of investing—one that harnesses the power of big data and artificial intelligence. This innovative guide walks you through everything you need to know to fully leverage these revolutionary tools. Written from the perspective of a seasoned financial investor making use of technology, it details proven investing methods, striking a rare balance between providing important technical information without burdening you with overly complex investing theory.
10-Year Treasury Yield Surges Over Stock Market’s Dividend Yield
There are many factors to consider for choosing how to weight stocks and bonds in an investment portfolio and relative yield is on the short list. By that standard, the recent surge in the 10-Year Treasury yield vs. the dividend payout rate for US equities (S&P 500) looks attractive, at least compared to recent history.
Macro Briefing: 16 June 2023
* US Secretary of State Blinken flying to Beijing for high-stakes diplomacy
* Is it a bull market again? Maybe, but there are still risks to consider
* China economic recovery is stalling, recent indicators suggest
* Beijing planning major steps to revive the country’s sluggish economy
* BlackRock is applying to launch a spot bitcoin ETF
* US Industrial production fell in May, but manufacturing component edged higher
* US import prices fell in May, helping ease inflation pressure
* NY Fed and Philly Fed mfg indexes mixed for June with signs of optimism
* US retail sales beat expectations and rise for second month in May:
Will Sticky Core PCE Inflation Ease In Months Ahead?
The Federal Reserve left interest rates unchanged in yesterday’s policy announcement, marking the first time the central bank has not lifted rates since the hiking cycle began in March 2022. But Fed Chairman Jerome Powell was careful to advise that more hikes may be coming.
Macro Briefing: 15 June 2023
* Fed’s Powell sees progress on taming inflation, but says more hikes still possible
* US housing market is tight because most homeowners have low mortgage rates
* China industrial output grows less than expected in May
* China central bank cuts its key medium-term lending rate
* EU suggests breaking up Google’s ad business in preliminary antitrust ruling
* US wholesale inflation fell more than expected in May
* Fed leaves interest rates unchanged but expects more hikes ahead:
10-Year US Treasury Yield ‘Fair Value’ Estimate: 14 June 2023
The market continues to price the US 10-year Treasury yield at a relatively wide spread over its “fair value”, based on the average estimate of three models assembled by CapitalSpectator.com for May 2023.
Macro Briefing: 14 June 2023
* Federal Reserve expected to skip rate hike in today’s policy announcement
* Rising stock market implies monetary policy isn’t tight enough to tame inflation
* US economy may be “slipping into an expansion”, says fund manager Tom Lee
* Decoupling from China would be “disastrous”, says Treasury Sec. Yellen
* Global oil demand to peak around 2028 as energy transition unfolds, IEA says
* Eurozone industrial output rebounds in April but outlook remains cautious
* UK economy bounced back in April, expanding 0.2%
* Small business sentiment ticks up in May, but remains near multi-year low
* US consumer inflation eases to 4% annual pace in May–lowest in over 2 years:
Bear Market Persists For Commercial Real Estate Stocks
Investors are celebrating what some say is a new bull market for the broad US equities market, but the party remains on ice for commercial property shares.
Macro Briefing: 13 June 2023
* China unexpectedly cuts key interest rate amid concerns of slowing growth
* US junk loan defaults rise sharply as higher interest rates take a toll
* Japan’s Nikkei 225 stock index rises to highest level since 1990
* A sharp downturn in commercial real estate would threaten big banks
* US regulators seek to block Microsoft’s Activision takeover
* Consumer inflation expectations for year-ahead outlook ease in May: NY Fed
Risk Assets Rallied Last Week As US Bonds Eased
Buyers pushed up prices for most of the major asset classes last week. US bonds were the downside outliers, based on a set of ETFs through Friday’s close (June 9).