Greetings,
Equities: Rising real yields continue to pressure stocks.
![The Daily Shot Brief – January 19th, 2022](https://thedailyshot.com/wp-content/uploads/RA-TIPS2201190437.png)
![The Daily Shot Brief – January 19th, 2022](https://thedailyshot.com/wp-content/uploads/EQ-ESA2201190437.png)
Credit: Investment-grade corporate debt duration has been rising over the past couple of decades, making the market more vulnerable to rate increases.
![The Daily Shot Brief – January 19th, 2022](https://thedailyshot.com/wp-content/uploads/CR-IG-Duration2201190437.png)
Large US corporate bankruptcies are increasingly filed in Houston courts.
![The Daily Shot Brief – January 19th, 2022](https://thedailyshot.com/wp-content/uploads/CR-Filing-bankruptcy-cases-in-Houston2201190437.png)
Rates: The Treasury curve continues to flatten at the longer end as the market expects the Fed rate hikes to slow US economic growth.
![The Daily Shot Brief – January 19th, 2022](https://thedailyshot.com/wp-content/uploads/RA-CUrve32201190437.png)
Since the Treasury yield curve has already flattened a lot, the Fed may not be able to raise rates aggressively without inverting the curve, which typically preceded a recession, according to Alpine Macro.
![The Daily Shot Brief – January 19th, 2022](https://thedailyshot.com/wp-content/uploads/RA-Curve2201190437.png)
China: Industrial production growth has slowed compared to pre-pandemic levels, particularly in the auto, metals, and mineral sectors.
![The Daily Shot Brief – January 19th, 2022](https://thedailyshot.com/wp-content/uploads/CH-IP-Detail2201190437.png)
United States: New business applications have been unprecedented since the start of the pandemic.
![The Daily Shot Brief – January 19th, 2022](https://thedailyshot.com/wp-content/uploads/US-New-bus-apps2201190437.png)
Food for Thought: US political party affiliation, recent trend:
![The Daily Shot Brief – January 19th, 2022](https://thedailyshot.com/wp-content/uploads/VTP-AAA-US-party-affiliation-recent-trend2201190437.png)
Edited by Devon Lall
Contact the Daily Shot Editor: Editor@DailyShotLetter.com