US Corporate Fundamentals Improving

Despite the recession calls and financial tightening, corporate fundamentals appear to be improving, or let’s just say it’s getting less bad. Earnings revision for large caps flipped to positive, while that for mid and small caps is going in the right direction. Could the next phase of the bull market be driven by “fundamentals”? Stay …

If Rising Rates Hurts And Causes A Recession, Why Are Bank Stocks Not Falling In Anticipation Of Rising NPL?

The fear is that with rising interest rates globally, borrowers are hurting with higher interest payment, leading to a surge in defaults. Blackstone’s CMBS comes to mind. However, we note that bank stocks are rallying. Seems like markets are not expecting a surge in NPLs. Economy is fine, especially in Europe.

China: More Pain To Come?

China is dealing with several problems. One, the economy is slowing due to increased regulations on the tech and property sector. Two, the government has been trying to wean off the economy from too much leverage. Three, Omicron is a tough challenge for China, given the low vaccination rate, fragile healthcare system and the political …

Down beat outlook, lacklustre earnings but bullish market

US stocks are up strongly despite 1) IMF downgrading economic growth outlook, 2) lacklustre earnings season, and 3) FED officials leaning towards controlling inflation. S&P 500 was up 1.61%, NASDAQ Comp up 2.15%, Small Caps up 1.90%, Tech up 1.88% and Financials up 1.37%. Bonds continue to trade lower, with the 10Y yield rising to …