GBGR News and Press, Global Beta Momentum-Growth From 07/15/22

Basic economics says that companies can only set prices at a level where the current supply will meet demand. While the Fed is hiking rates to quell inflation, inflation would eventually cure itself through the normal economic cycle if it did nothing. Blaming giant corporations fo...

This week’s reading from the AAII showed 26.9% of respondents reporting as bullish for the first time since early June. The increase in bullish sentiment was met by bears falling back below 50% to 46.5%, the lowest reading since the first week of June. Neutral sentiment fel...

Demographics are the most important factor for long-term analysis. The young and old age cohorts negatively impact economic growth. The prime-age population (25-64) drives the bulk of economic activity. The world's major economies are suffering from lower population growth and...

By long-term historical comparison, initial claims remain very low. The number of open jobs in the country has receded for two consecutive months, though the level remains very high by historical comparison. The tight labor market is a crucial component of the economy, providing s...

At the heart of this market volatility is inflation uncertainty, which results in policy uncertainty. The U.S. Federal Reserve (“Fed”), once the leader of “team transitory” is shifting its strategy. The May CPI upside surprise, along with the University of ...

The July 10 "Blue Chip" consensus is that GDP grew at a 1.1% annual rate in Q2. However, based on the most recent data, S&P Global Market Intelligence estimates that GDP fell 1.8% during the quarter. While recent commodity price pressures will ease or, in some cases, reverse as su...

Core inflation now appears broadly entrenched across goods and services, which should solidify Fed officials’ confidence that restrictive policy is appropriate. June headline CPI increased 1.3% month-over-month, firmer than consensus expectations. Despite June’s data...

The ClearBridge Recession Risk dashboard is a group of 12 variables that identify inflection points for the US economy. The risks of recession are continuing to elevate. In the middle of last month, we updated our recession odds to 55% over the next 18 months. The key question for...

The most recent headline CPI came in at 9.1% so it might seem odd to think that the risk of disinflation and deflation is rising. But while the CPI is a rear-view looking indicator, many forward-looking indicators are starting to tell a very different story – a story of falling...

Equities would suffer if rate hikes trigger a growth downturn. Europe has the opportunity to create a more sustainable and more resilient version of itself – replacing high dependencies on Russian energy and shedding the image of an “old” economy by accelerating t...