SMLE News and Press, Xtrackers S&P SmallCap 600 ESG ETF From 10/01/22

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 ...

Summary It was yet another brutal month for the bullish traders and long-term investors holding a balanced portfolio. The S&P 500 fell about 8% while the AGG total bond market ETF fell nearly 4%, including dividends. Looking ahead, key economic data hits next week before t...

Summary What the market wasn't expecting was for the FOMC to raise its target rate, extend the duration for rate cuts, and claim that inflation is still out of control. In order to have a meaningful low, the S&P 500 needs to get a 5th wave up, and for rates, the USD and oil to...