Equal weighting has its advantages — and disadvantages. Whether you should use this model-free, perfectly unbiased approach to portfolio design is debatable. But in the realm of benchmarking, there’s a strong case to adding it to the mix.
US Q2 GDP Estimate Slips Further, But Still Set For Strong Gain
Tomorrow’s release of second-quarter US economic data from the government is expected to show output grew at a stronger rate over Q1’s robust gain, based on a set of nowcasts. In line with recent updates, however, today’s estimate reflects another downside revision relative to previous Q2 nowcasts.
Macro Briefing: 28 July 2021
* IMF warns that higher inflation could be more than transitory
* Tapering timeline in focus in today’s press conference with Fed’s Powell
* Apple, Microsoft and Google report huge profits for Q2
* Is the sharp drop in China stocks a buying opportunity? Not yet, says UBS
* US durable goods orders continued increasing in June
* US Consumer Confidence Index ticked up in July to new pandemic high
* US house price increase continued to accelerate, breaking records in May:
Introducing The US Macro Trend Index
Goldman Sachs cut its forecast for US economic growth in this year’s second half, citing slower activity in the services sector and the potential headwind from the spread of the Covid-19 Delta variant. Managing growth expectations down aligns with a new metric developed by CapitalSpectator.com: the US Macro Trend Index (MTI).
Macro Briefing: 27 July 2021
* Tense US-China meeting ends on Monday between high-level officials
* Will the Fed’s light touch with inflation management work?
* US real yields fall to record lows
* Survey data suggest inflation is peaking
* Goldman Sachs cuts US growth outlook for 2H:2021
* Stocks in emerging markets fall into the red for 2021
* S. Korea’s economy expands at fastest pace in a decade in Q2
* Tesla’s quarterly profit surges to record high
* New US home sales continued falling in June; lowest since April 2020:
US Stocks Rebounded Last Week As Emerging Markets Tumbled
American shares recovered with a strong gain for the trading week through Friday, July 23, posting the highest increase for the major asset classes, based on a set of exchange traded funds.
Macro Briefing: 26 July 2021
* Dr Fauci warns the US going in ‘wrong direction’ again with Covid-19 cases
* Tense start for US-China meeting; Beijing official says relations are in ‘stalemate’
* Taking action on climate change can boost global economy, predicts economist
* Weak US population growth, which may soon go negative, is economic headwind
* Public and bond-market expectations suggest inflation surge is easing
* US real 10-year yield at record low as growth concerns rise
* US labor shortages, inflation pressures expected to continue, NABE survey finds
* Indexing assures top-quartile performance, predicts legendary strategist
* US economic growth eases in July due to services slowdown:
The ETF Portfolio Strategist: 25 July 2021
Our trio of proprietary strategies continued to trail their common benchmark last week (through Friday, July 23). The gap ranged from slight to substantial.
Book Bits: 24 July 2021
Romain Felli
Summary via publisher (Verso Books)
The Great Adaptation tells the story of how scientists, governments and corporations have tried to deal with the challenge that climate change poses to capitalism by promoting adaptation to its consequences, rather than combating its causes. Since the 1970s, neoliberal economists and ideologues have used climate change as an argument for creating more “flexibility” in society, for promoting more market-based solutions to environmental and social questions. This book unveils the political economy of this potent movement, showing how some powerful actors are thriving in the face of dangerous climate change and even making a profit out of it.
The ETF Portfolio Strategist: 23 July 2021
* US stocks rebound, ending the week at new high
* Portfolio strategy benchmarks post strong gains for this week’s trading