In case you needed more evidence that the Fed is playing an outsize role in equity markets, I present to you the following chart. This shows the relative performance of banks and utilities versus an interest rate expectations proxy (bottom pane). When rate expectations go up, utilities fall, and banks rise. When rate expectations go down, utilities soar, and banks fall.
Jeremy Jones, CFA
Latest posts by Jeremy Jones, CFA (see all)
- Arnott on FANG Stocks “You Would Have to Use Implausible Assumptions to Justify Today’s Price” - July 23, 2019
- The Retail Robot War Has a New Front: Groceries - July 22, 2019
- Are you Part of the Herd Inflating the Indexing Bubble? - July 19, 2019