The VP Research Blog
A blog about financial markets and the VP investing framework
Fed No Longer the “Only Game in Town” for Stocks
US equities are beginning to behave more normally. The average pairwise correlation across S&P 500 stocks has plunged (top-left chart), which tells us that stocks are starting to move independently from one another and are no longer driven to the same extent by...
Structural Inflation Back Drop ==> Buy Dips in Gold
Inflation breakevens have been rising and real yields have been falling this year, boosting gold and silver prices. Gold and silver prices corrected this week and last week as the reflation narrative gained traction, with 10y yields rising to their highest level...
Looming Lockdowns and Wait-And-See Markets [VIDEO]
Tian and Simon discuss VP's most recent Leading Indicator Watch ("Lockdown Lottery") and our August Macro Snapshot. (recorded August 7th)
Lockdown Threat = A Two-Speed Economy and Market
Inequalities that existed before this crisis have been amplified by it. One place where this is prominent is in markets. Interest-rate sensitive sectors are seeing a marked outperformance due to their heightened sensitivity to liquidity. Technology has also benefited...
Preparing for a Choppy August [VIDEO]
Simon and Aaran talk about August volatility and how VP is trying to cut through the Covid noise with VP Recovery dashboards. (recorded July 31st)
No Irrational Exuberance Outside of Tech and the FAANGs
Outside of technology and the FAANGs, US equity markets are pricing in a stalling of the economic recovery. The ratio of cyclical to defensive sectors has been trending sideways since the early June peak, as has the ratio of small-cap vs large-cap equities (top-left...
Challenging the USD Consensus [VIDEO]
Simon and Aaran discuss VP's views on the US dollar (recorded July 24th)
Don’t Expect the Summer Doldrums this August
After such a tumultuous start to the year, it would be understandable if the market was even more diligent than usual in switching off this summer. Markets around this time are generally perceived to be quiet anyway, but the lack of liquidity most likely contributes...
Cyclicals Stuck in Second Gear [VIDEO]
Aaran Tian discuss the latest market developments and views on sector rotation (recorded July 17th)
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