January 5, 2023
Good morning,
It is Morning Note Thursday due to the holiday-shortened week. Back to M-W-F as usual next week.
Overnight price action has seen a modest reversal of some of this week’s trends in global markets. Yields are up in Treasuries after a rather dramatic decline in longer duration issues earlier this week. Gold has pulled back and European equities have stopped going up. Futures are soft, down -.50% on some not very negative jobs data from ADP. Remember, investors want a weakening employment picture to verify receding inflation – they didn’t get that this morning from the ADP data. That notwithstanding, volume is low, and traders seem to be sitting on their hands – maybe due to tomorrow’s key data points (U.S. payrolls and euro zone CPI).
I am increasingly frustrated because I don’t have a good “feeling” about the equity market in the months ahead. But I don’t yet have the market data required to make a defensive call, and I am committed to a disciplined data driven investment process. It’s never easy – see you Monday.
Be well,
Mike
Robertson Stephens paid no fee to obtain recognition but has paid licensing fees to reference its appearances on the Newsweek, USA Today, and FA Magazine rankings lists. See Awards Disclosures
