Can Equities & Rates Still Rise Together?
Qi’s Macro Risk Model Says — Not Right Now.
Heading 1
Heading 2
Heading 3
Heading 4
Heading 5
Heading 6
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.
Block quote
Ordered list
- Item 1
- Item 2
- Item 3
Unordered list
- Item A
- Item B
- Item C
Bold text
Emphasis
Superscript
Subscript
Since mid-April, the S&P 500 has rallied — but under the surface, the macro sensitivities have shifted meaningfully:
• Positive Sensitivity to 10yr yields is falling.
Earlier in the year, rising yields were seen as a sign of growth / reflation. Now, that sensitivity has been fading.
• Positive Sensitivity to USD is falling.
The equity market is also showing reduced tolerance for a stronger dollar, consistent with concerns on FCIs.
• High Yield credit spreads matter again.
Negative sensitivity to wider HY spreads is rising at YTD highs — this makes for a more fragile risk backdrop if any cracks appear.
Continue reading our analysis on the other headlines by downloading the PDF below
Related Articles
Underweight Tech. Still Long AI
.jpg)
Small Caps vs Big Tech: The Rates Problem, Dissected
Credit Widened 55bp. Equities Are Only Now Listening
Oil Spike: Which S&P 500 Sectors Were Actually Macro?