RZG News and Press, Invesco S&P Smallcap 600 Pure Growth From 10/02/22

Summary The average of S&P 500 for September 2022 was 3,853 (18% down from December 2021 average of 4,675) and is still 1,243 points higher than the corresponding long-term trend value of 2,610. For the S&P 500 to reach the long-trend would entail a 32% decline from the Se...

Summary All the inflation news coming out this past week was not good. The fight against inflation is really just beginning. U.S. interest rates are rising and the Treasury yield curve has turned negative, forecasting a recession, if it is not already here. All signals fro...

Summary The Bank of England's new purchases of Gilts coincided with a reassessment of the trajectory of Fed policy. The rapid referendums in eastern Ukraine and Russia's annexation of the territories, after taking Crimea in 2014, point to a new phase in the conflict. Sterling'...

Summary As the BOE began to raise rates and market yields surged higher, trouble quickly materialized. The size of the LDI (liability-driven investing) market has exploded over the past decade. The Bank of England stopped the selloff exacerbated by heavy selling from U.K. pens...

Summary Economic data has been "recession-like", but the FED has no option but to raise rates in that backdrop to kill inflation that remains resilient. US economic growth is anemic today. Using the word "mild" to describe any recession scenario now is a mistake. TINA is dead....

Summary Volatility and uncertainty seem to be re-emerging back into the markets. The bigger issue for the U.S. is “the consequences of rapidly rising interest rates.”. Money market funds have realized two straight weeks of inflows. Volatility and uncert...

Summary Markets again find themselves in a position where technical factors, positioning and sentiment suggest this sell-off may be overdone and a short-covering rally due. Tactical traders may well be rewarded for reducing hedges and short positions. However, until the fundam...

Summary The Federal Reserve appointed itself with a new objective. Despite strong evidence proving that positive real yields were not necessary for economic growth, Chairman Jerome Powell wants them anyway. Federal debt is like a freight train and these rates are only fueling ...

Summary Reserve balances fell below $3 trillion this past week. That is the first time since November 2020. There is now clear signs of stress forming in financial markets. Liquidity remains a significant problem for equities and financial markets overall. This week ...

Summary The composite consumer sentiment increased to 58.6 in September, up from 58.2 in August. Buying conditions for durables and the one-year economic outlook continued lifting from the extremely low readings earlier in the summer, largely offset by modest declines in the long ...