There are some recurring themes this week in our highlighted charts, debt and leverage will overhang any global economic discussion; however, we see some interesting dislocations that can offer global macro opportunities:

  • Short yields are now higher than dividend yields.
  • Growth stocks continue to outperform value.
  • The yield curve continues its slow flattening march.
  • EM stocks are diverging from developed markets.
  • Wealth as measured by equity market cap is falling.
  • An increasing number of firms are losing money.
  • Copper prices signal an economic slowdown.
  • Global PMI, albeit still above 50 is moving lower.

Dislocations offer opportunities for exploiting trends or betting against the herd wisdom. This will not happen if markets are range-bound. Dislocations are attention focusers. These are the places I will be spending my research time.