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- "When yields have risen, High Beta has outperformed the S&P 500 by the widest margin"
"When yields have risen, High Beta has outperformed the S&P 500 by the widest margin"
DC Lite #690
Welcome back to DC Lite: Daily Chartbook’s free, entry-level newsletter containing 5 of the day’s best charts & insights.
1. New home sales. Single-family home sales rose 6.4% MoM in August to a SAAR of 684 million, a YTD high. The median sale price continues to slide.
2. Yields streak. "10-year yields have been higher for 7-months in a row, inclusive of September, tied for the longest streak in 50 years."
3. Yields vs. GDP. "Taking a step back, US yields are not at atypical levels relative to economic conditions."
4. Factors vs. yields. "When yields have risen, High Beta has outperformed the S&P 500 by the widest margin, followed by Pure Value and GARP. The biggest laggards have been Low Volatility and Dividend Aristocrats, while Momentum has also tended to suffer."
5. Stock/stock vs. stock/bond correlations. "If there's one chart that frames the challenges to risk management right now, I think it's this one."
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