SMLE News and Press, Xtrackers S&P SmallCap 600 ESG ETF From 12/19/22

Summary During Wednesday’s Federal Open Market Committee confab, the Fed speaks – market goes down; journalists ask questions – market goes up. The action here is being done by very sophisticated trading programs employing state-of-the-art artificial intelligence. ...

Summary Stocks have been a big beneficiary of inflation due to faster sales and earnings growth. However, with rates rising 2023, growth should slow dramatically in 2023. This should result in further PE multiple compression and lower stock prices. If 2022 was about monetary p...

Summary The first move in equities (following an FOMC decision) is often the wrong move. Headline CPI was up .1% month on month recently. Our base case is that the data between now and February will continue to show a decline in headline inflation. While no one was excited...

Summary As the stock market went up the first two days of the week, more shares transacted at rising prices. A leading retail-oriented broker indicated their clients have been buying mostly corporate/municipal bonds and commodities, while selling declining US government bonds. The t...

Summary This past week, the market feigned a break out. Once the market broke back below 4034SPX, it confirmed our expectation for a pullback to a larger support region. Depending upon how the market reacts in the coming week, we may have a buying opportunity with the market pointin...

Summary The markets remain stuck in a Bearish phase. The United States Federal Reserve and the pivot to monetary tightening is a primary reason for the pessimism and despair. A series of economic and geopolitical events have helped shape this reality. Until the Fed eases and mac...

Summary October 2022 data indicates total value of goods being imported by the U.S. from China shrank year-over-year, pointing to developing weakness in the relative health of the U.S. economy. Value of U.S. exports to China was up, but has dropped to single-digit growth rates after hov...

Summary December FOMC meeting point to policymakers already starting to take a less aggressive stance to policy tightening compared to the prior four 75 basis point hikes. In line with PMI data, the latest official data signalled a slowdown in the pace of Consumer Price Inflation during...

Summary The NFIB released its November read on small business sentiment this morning, with the report showing a modest uptick in optimism. Across the individual categories of the survey, breadth was mixed, with six of the ten inputs to the optimism index moving higher month over month. ...

Summary November CPI further confirmed a peak in the CPI time series. The stock market initially celebrated the good news but got stymied by the reality of minimal changes in the outlook for monetary policy. Future CPI reports providing ongoing reassurance of a downtrend should crea...