Below is a chart and brief excerpt from today's Early Look written by Director of Research Daryl Jones.
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Are we having a “Quad 4” month, which will accelerate going forward? In terms of risk off and general subsector equity performances, it has been a #Quad4-ish month. Obviously, the rapid increase in interest rates, associated strength of the dollar, and inverse correlation to the dollar and U.S. equities (currently at roughly -0.84) has been a key dynamic at play. But as Keith noted yesterday, “both the USD and Rates are signaling immediate-term overbought now.” So it shouldn’t be a total surprise if we get at least a short-term reversal/breather in this correlation. |
