Oil Price Rout Doesn't Predict Future for Crude Market - Bloomberg:
From Drowning in Oil, to Peak Oil, and Back
We have a new narrative, and it has us floating inexorably to hell, borne on a flood of oil. That, at least, is the story being offered to explain why markets have turned decidedly risk-averse again, with U.S. stocks suffering their worst day since April 1. Meanwhile bond yields are falling, with the 10-year Treasury below 0.6% once more. Put these together and stocks are lagging behind bonds by 33% since they peaked in January:
As stocks’ rally had looked premature and overdone, this isn't necessarily bad news. Further, it is interesting to look at a radiography of how the U.S. market behaved, using the Bloomberg factor analysis function (FTW on the terminal). It is too soon to build much on this, but for the first time in a long while, the strongest-performing factor Tuesday was value, while large companies and stocks that had momentum behind them did worst:
From Drowning in Oil, to Peak Oil, and Back
We have a new narrative, and it has us floating inexorably to hell, borne on a flood of oil. That, at least, is the story being offered to explain why markets have turned decidedly risk-averse again, with U.S. stocks suffering their worst day since April 1. Meanwhile bond yields are falling, with the 10-year Treasury below 0.6% once more. Put these together and stocks are lagging behind bonds by 33% since they peaked in January:
As stocks’ rally had looked premature and overdone, this isn't necessarily bad news. Further, it is interesting to look at a radiography of how the U.S. market behaved, using the Bloomberg factor analysis function (FTW on the terminal). It is too soon to build much on this, but for the first time in a long while, the strongest-performing factor Tuesday was value, while large companies and stocks that had momentum behind them did worst:
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