The Daily Shot Brief – June 18th, 2021



Rates: Investors’ response to the Fed’s hawkish dot-plot was to unwind some of the reflation trades, which have become crowded recently. In the equity markets, inflation-sensitive shares took a hit (2 charts).

Source: Daily Shot
Source: Daily Shot


Credit: The correlation between CCC and BBB-rated US corporate bond spreads has dropped in recent months, which typically precedes periods of credit stress.

Source: Arbor Research & Trading


Equities: The stock-bond correlation continues to climb.

Source: Daily Shot


Stock volatility has been subdued.

Source: @markets Read full article


Emerging Markets: In the past 30 years, there has never been a rolling two-year period without a near 20% decline in EM stocks, according to Alpine Macro.

Source: Alpine Macro


EM equity volatility is at relatively low levels as ETF flows improve.

Source: Alpine Macro


United States: Based on BofA’s card data, consumers are increasingly spending outside of home.

Source: BofA Global Research; @SamRo


Food for Thought: Western US drought conditions:

Source: NCAR
Source: The New York Times Read full article Further reading

Edited by Richard Holmes

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