Three Thoughts on the US Equity Market’s Recent Resiliency

This week in the podcast, we review our latest thoughts on the US equity market’s recent resiliency. The big things you need to know: First, US equities tend to outperform bonds when the Fed is hiking rates, providing one longer-term reason for US equity market resiliency as the timing of Fed rate hikes remains in focus. Second, negative real yields, which are close to their lowest levels post Financial Crisis, also remain supportive of US equity markets for now. Third, last month’s peak in freight rates helped to put in what has been, at least for the moment, a bottom in the S&P 500 and the cyclical trade as investors have been inclined to latch onto glimmers of hope on the supply chain problem.