Chicago | Atlanta | Austin | Denver | Greenwich | Houston | Los Angeles
Menlo Park | Minneapolis | Naples | Nashville | New York City | San Francisco
Santa Barbara | Scottsdale | Sioux Falls | Washington D.C. | West Palm Beach
Cresset refers to Cresset Capital Management, LLC and all of its subsidiaries and affiliates. Cresset Asset Management, LLC, also conducting advisory business under the name of TRUE Cresset Sports and Entertainment, provides investment advisory, family office, and other services to individuals, families, and institutional clients. Cresset Partners, LLC, provides investment advisory services strictly to investment vehicles investing in private equity, real estate and other investment opportunities. Cresset Asset Management, LLC, and Cresset Partners, LLC, are SEC registered investment advisors.
Macro Strategy Chartbook July 2018
—
Valuation is presenting a mixed picture. Shorter-term, the S&P 500 appears cheap, but investors increasingly believe that we’re approaching peak earnings. Longer term, blue chips are trading above the 80th percentile of their historical range, exceeded only by the tech bubble.
—
Economists are penciling in 4 per cent growth in the US, but international economic data is falling short of expectations. China’s economy appears to be slowing. European growth has been disappointing, too.
—
Liquidity indicators are tightening as the yield premium lenders require to extend credit has increased over the last few months. A breakdown in liquidity would prompt us to reduce risk. The ECB’s intention of keeping overnight rates at zero for the next four quarters was a surprise that will likely keep a lid on intermediate interest rates.
—
Investor sentiment moved back to neutral territory last month. Headline-weary investors are showing little conviction at the moment.
—
Technical conditions remain in “risk-on” mode, although technicals tend to be a lagging indicator. Particularly interesting was the breakdown between emerging markets equities and a breakout in small caps relative to the S&P 500.
Click here to view the full Chartbook.
To sign up for Jack Ablin’s complimentary newsletter, please email Beth Hangren bhangren@cressetwealth.com
The post Macro Strategy Chartbook July 2018 appeared first on Cresset.
About Cresset
Cresset is an independent, award-winning multi-family office and private investment firm with more than $40 billion in assets under management (as of 11/01/2023). Cresset serves the unique needs of entrepreneurs, CEO founders, wealth creators, executives, and partners, as well as high-net-worth and multi-generational families. Our goal is to deliver a new paradigm for wealth management, giving you time to pursue what matters to you most.
Receive Weekly Market Updates