Trends turning flat as breadth becomes a headwind.
Investors too scared to buy ETF’s suggests sentiment is a tailwind.
On yields & rates: US is following, not the leader.
This more challenging trend backdrop comes at a time when bond yields are rising and central banks are tightening. On both of these fronts, the US is following global developments. The Fed continues to chase inflation, but at least at this point it's finally paying attention. Maintaining that focus could be a challenge if economic data continues to come in weaker than expected. Friday’s employment report could be a big test. US bond yields are off their highs, but breaking out around the world. German 10-year yields are trying to get through resistance at zero and back into positive territory for the first time since 2019. Japanese 10-year yields are at their highest in over 6 years.
