city
yellow

DoubleLine Podcasts

MMM Episode 67: Improving Sentiment, Curious Bitcoin, Squishy Fedspeak

Surveying the week of May 23-27, Jeff Mayberry and Samuel Lau (2:01) take note of improved investor sentiment in the form of a rally in stocks, allowing the S&P 500 to skirt the -20.00% definition of a bear market. The improvement in stocks was accompanied by lower bond yields. While bitcoin has typically behaved as a risk asset, the cryptocurrency was down about 1% on the week as of mid-Friday May 27 (8:38). Jeff Mayberry asks whether that move in bitcoin is contradicting the more optimistic message of the week’s rally in stocks, or whether bitcoin’s decline, muted compared to larger losses for other cryptocurrencies, suggests technical selling pressures are abating for the marquee cryptocurrency.

Turning to the week’s macro news, the cohosts zero in on the release of minutes of May 4 meeting the Federal Open Market Committee (FOMC) (10:34). The minutes took note of tightening financial conditions, Fed expectations of a rebound in GDP in the second quarter of the year and PCE price inflation on a path to near the Fed’s 2% inflation target in 2024. “They are being a little optimistic,” Samuel Lau says, “relative to what the market’s thinking in terms of the progression of PCE price inflation.” While the minutes couched the statement in what Jeff Mayberry describes as a “squishy” turn of rhetoric, the FOMC for the first time raised the possibility of the Fed’s selling Agency mortgage-backed securities.

For the week of May 30-June 3 (25:28), the hosts point to the March reading of S&P CoreLogic Case-Shiller 20-City Composite City Home Price Index on Monday; the beginning of quantitative tightening, the ISM manufacturing survey for May and JOLTS job opens report on Wednesday; and the ISM services and May labor market reports on Friday.

The views and opinions expressed herein are as of the date recorded and should not be construed as an offer to buy or sell any securities. Such views/opinions may differ from those of DoubleLine Capital or other of its affiliates and are subject to change without notice. DoubleLine has no obligation to provide any updates or changes. The following audio presentations represent DoubleLine’s intellectual property. No portion of these presentations may be published, reproduced, transmitted or rebroadcast in any media in any form without the express written permission of DoubleLine. DoubleLine has no obligation to provide any updates or changes. To receive permission from DoubleLine please contact [email protected].

Neither DoubleLine nor any of its affiliates makes any representation or warranty as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed.

DoubleLine is not providing any financial, economic, legal, accounting or tax advice in these podcasts. The receipt of these podcasts by any listener is not to be taken as constituting the giving of investment advice by any DoubleLine entity or individual to that listener, nor to constitute such person a client of any DoubleLine entity. The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.

logo

DoubleLine

2002 N. Tampa St.
Suite 200
Tampa
FL 33602

813.791.7333

 

This is a Test!

DoubleLine is testing our emergency back-up plan. If this were a real emergency, DoubleLine would be posting news, updates, contact information, webcast or conference call information here to keep our clients updated on the situation. To contact DoubleLine, please click here.

×
 

Thank you for your request(s). You will receive slides after the webcast has started. Replay and Recap notifications will take several days following the compliance review.

×
 

    Please fill in your information below in order to open this article in your browser.

    I am an Institutional Investor [recaptcha]