BKMC News and Press, BNY Mellon US Mid Cap Core Equity From 01/21/23

Summary Looking at the most recent readings of many economic indicators, nowcasting gives a more up-to-date reading of the economy than gross domestic product. The weakest US sector is housing. Building permits have been on a downward trend for much of 2022 and dropped again in December...

Summary Many investors are happy to be moving on from the market volatility of 2022, which left a mere few good places to hide. Hitting the so-called “sweet spot,” US mid caps - generally defined as companies with market capitalization between US$2 and US$10 billion - can ...

Summary Massive outperformance of high short interest stocks versus the S&P is notable in isolation and particularly so over the past five years. Pace of short covering has also been violent. Speed and size of moves might have caused large losses in systematic strategies leading...

Summary Reducing the US deficit is praiseworthy. How was that accomplished in 2022? Reducing the deficit is not the same as reducing the debt. US debt continues to climb into the stratosphere. US debt above $30 trillion is more than $95,000 per person. How will it be paid? ...

Summary General market performance. Premium discount behavior trends. General performance of interval funds. CEF Insights Quarterly Review January 2023 Interview – Tom Roseen CEFA : Welcome to CEF Insights, your source for Closed-End Fund informa...

Summary Falling wages reduce the odds of a 1970s style outcome. The biggest lesson for me was the sheer uncertainty of the future. We keep threatening to default on ourselves over a self-imposed constraint that doesn’t actually constrain anything. Here are some thin...

Summary Easing supply chain pressures are evident in supplier delivery times, which have been rising at a slower pace recently. Labor shortages did not ease much even as demand weakened. Weak demand conditions are likely to continue limiting companies' ability to sustain high wage g...

Summary The long-term leading indicators of growth and liquidity suggest corporate earnings and profit margins will continue to be pressured throughout 2023. However, as the lags from leading indicators tend to be long and variable, we may not see a material impact in earnings growth un...

Summary Financial conditions indicators are flashing risk embracement and loose conditions. Markets have been so speculative in recent years that squeezes have become commonplace. While powerful squeezes captivate the marketplace, potential accident catalysts make steady headway. ...

Summary Since October 13, 2022, the S&P 500 Index is up 11.80% on a price only basis. For the start of 2023, the S&P 500 Index is up 4.16% through January 13, 2023. As we noted in our recently published Winter Investor Letter, maybe the negativity around the market/economy is ov...