Greetings,
Energy: The OPEC+ production increase is off the table for now as the impasse continues.
![The Daily Shot Brief – July 6th, 2021](https://thedailyshot.com/wp-content/uploads/EN-OPEC-ST2107060433.png)
Oil prices jumped.
![The Daily Shot Brief – July 6th, 2021](https://thedailyshot.com/wp-content/uploads/EN-OPEC2-ST2107060433.png)
Equities: Higher inflation expectations tend to be good for stock performance.
![The Daily Shot Brief – July 6th, 2021](https://thedailyshot.com/wp-content/uploads/EQ-real-rates-v-infl-exp-impact2107060433.png)
Alternatives: PE acquisitions are surging this year. Given frothy valuations, the latest vintages are likely to underperform.
![The Daily Shot Brief – July 6th, 2021](https://thedailyshot.com/wp-content/uploads/AM-PE-Deals2107060433.png)
Credit: As discussed previously, the loan-to-deposit ratio continues to decline, especially for large banks. The recent declines have been driven by the Fed’s QE, which sharply boosted deposits.
![The Daily Shot Brief – July 6th, 2021](https://thedailyshot.com/wp-content/uploads/CR-Loan-to-deposit2107060433.png)
By the way, the table below illustrates how QE increases deposits in the banking system.
![The Daily Shot Brief – July 6th, 2021](https://thedailyshot.com/wp-content/uploads/CR-QE-mechanics2107060433.png)
Rates: QE tapering tends to flatten the yield curve.
![The Daily Shot Brief – July 6th, 2021](https://thedailyshot.com/wp-content/uploads/RA-Tapering-and-curve2107060433.png)
Food for Thought: Lawn and garden equipment emissions:
![The Daily Shot Brief – July 6th, 2021](https://thedailyshot.com/wp-content/uploads/VTN-Lawn-and-garden-equipment-emissions2107060433.png)
Edited by Richard Holmes
Contact the Daily Shot Editor: Editor@DailyShotLetter.com