DoubleLine Quantitative Analyst Eric Dhall and Macro Asset Allocation Analyst Mark Kimbrough cover a very exciting market week of July 29-Aug. 2, including a very rough Friday for stocks. Eric and Mark review the end-of-week selloff in stocks triggered by Friday’s labor market report (00:36), look at a bond market rallying with incredible strength and a 2s10s inversion that has tightened considerably (3:52) and review a commodities market broadly selling off (6:31). It was a jampacked week in Macro Land, which included prints on home prices, job openings and consumer confidence (9:17). But Eric and Mark do deep dives into the two major events of the week: Wednesday’s exuberant Fed Day (15:16) and Friday’s market-moving unemployment report (21:54). On the former, they discuss the factors behind Fed Day’s dovish vibes, leading to their review of a very ugly picture painted by the new labor report. In their breakdown of the labor report, Eric and Mark explain why market followers are now referencing the Sahm recession signal and how it works. Next week will be a light one for macro (27:01), including a consumer credit print and the Senior Loan Officer Opinion Survey. This episode was recorded before market close on Aug. 2, 2024.
Mr. Dhall joined DoubleLine in 2013. He is a Quantitative Analyst on the Macro Asset Allocation team where he works with portfolio management performing analysis and trading for derivatives-based and multi-asset strategies. Mr. Dhall’s research and analysis has contributed to the team’s development of DoubleLine’s smart-beta suite of strategies. Prior to DoubleLine, he worked at Capital Group performing quantitative analysis in fixed income. Prior to Capital Group, Mr. Dhall was an instructor in finance at the UCLA Anderson School of Management and a research instructor at the UCLA Samueli School of Engineering. Previous to that, he worked in International Finance at Gulf Machinery company. Mr. Dhall holds a BS in Physics with a secondary emphasis in Business from the University of California, Berkeley and an MS in Financial Engineering from the UCLA Anderson School of Management.
Mr. Kimbrough joined DoubleLine in 2012, where he worked primarily on Agency Mortgage Backed Securities and the Fixed Income Asset Allocation process as a member of the Risk Analyst team. He transitioned to his current role in 2019 where he serves as an Analyst on the Macro Asset Allocation team. Prior to DoubleLine, Mr. Kimbrough was at Western Asset Management working on systems monitoring and development within the Risk Department. He holds a BS in Business Administration with a concentration in Real Estate Finance and a minor in Economics from the University of Southern California. Mr. Kimbrough is a CFA® charterholder.
