- Cyclical sectors and value stocks began to lead equity market performance for the first time in years, commodity prices rocketed, and the 10-year Treasury yield doubled.
- Yield curves flattened and breakeven inflation rates fell, cyclical and value stocks lost ground against defensive growth, commodities stumbled and lumber slumped, and the U.S. dollar strengthened.
- While both the debate and the pricing in markets have moved decisively from one-way to two-way in recent weeks, over a 12-month horizon we do not see much of a change in the fundamentals.
For further details see:
2-Way Markets Are Back