MMTM News and Press, SPDR S&P 1500 Momentum Tilt From 10/08/22

Summary Skewness in asset returns is a perplexing phenomenon and evokes different behavior from investors. Our theory is that skewness tends to move based on investor preferences. Investors in growth stocks may be pursuing lottery-like payouts, especially when such stocks are ...

Summary The sharp declines have dramatically changed the valuation landscape. Paying too high a premium for safety could backfire if market trends shift again. We believe growth stocks’ valuations are far more attractive today than they were a year ago. Active inves...

Summary As the Fed walks the line between curbing inflation and averting recession, anxious investors are seeking to balance the two risks. The question now is how fast can inflation fall and where does it come to rest? We don’t see a quick retrenchment or a return to the o...

Summary With inflation at the highest level in decades and volatility continuing to surge, equity investors are questioning their next moves. At the beginning of the year, financial conditions were very loose by any means historically, and we've very rapidly moved from loose finan...

Summary After a brutal six months, during which the Russell 1000 Growth Index fell more than 32%, growth stocks finally found a floor in June before rebounding. September is not over and is rarely kind to investors. A slower economy is, at least on a relative basis, supportive...

Summary The main economic data release for the trading week is the US inflation report. The UK economy is in a precarious position and facing a recession. Chinese President Xi is expected to meet with Russian President Putin at the Shanghai Cooperation Organisation summit in U...

For a decade, investors chased growth stocks, but now they won't touch them; will a recession and falling rates bring them back? Growth stocks are all about the future, and the CRSP Growth Index contains nothing about valuation. Young growing companies often have negative cash flow an...

Earnings for the S&P 500, according to Howard Silverblatt’s work at S&P, are expected to rise 7.7% in 2022. Growth stocks were grossly overvalued going into that bear market and they took the brunt of the damage. Real estate did well last week with rates falling bac...

SPDR S&P 1500 Momentum Tilt ETF (MMTM) - $0.6568. 30-Day SEC Yield of 1.49% as of June 16. Payable Jun 24; for shareholders of record Jun 22; ex-div Jun 21. For further details see: SPDR S&P 1500 Momentum Tilt ETF declares quarterly distribution of $0.6568

From the November peak to the recent trough, U.S. large cap growth stocks lost more than 30%, a decline on par with the pandemic induced bear market. Growth is still trailing the S&P 500 by roughly 10% and nearly 17% versus comparable value indexes. As economic growth slows, i...