city
yellow

DoubleLine Podcasts

MMM Episode 72: A Red First Half for the Record Books

With the June 30 close of 1H2022, Jeff Mayberry and Samuel Lau start (2:21) by looking at the month, quarterly and first-half-of-2022 returns for the stock market. These left the S&P 500 down just under 20% for the first six months of the year. The best-performing sector for that period was Energy, up 31.8%; the worst performer, Consumer Discretionary, down 32½%. Investors learned the hard way that 60-40 stock bond portfolios offered no protection from the year’s pain. Putting things into perspective, Samuel Lau notes that a proxy constructed by Deutsch Bank (8:15) shows that the 10-year U.S. Treasury in 2022 had its worst first half of the year since 1788. Touring the fixed income landscape (10:38), Jeff and Sam observe the Bloomberg U.S. Bond Aggregate, the widely followed proxy for the high-grade domestic bond market, lost 10.4% in 1H2022, led by a 14.4% loss in investment-grade corporate credit. The podcast discussed (12:40) an almost 11% pullback in June in commodities as measured by the Bloomberg Commodity Index, although that benchmark holds a gain of 18% year-to-date.

In their review of macro news for the week of June 27-July 1 (15:52), the podcast hosts sought to temper people’s take on a hotter-than-expected 1.9% month-over-month gain in April by the S&P CoreLogic 20-City Home Price Index, bringing its YoY return to 21.2%. Jeff Mayberry points out that April excludes the subsequent run-up in mortgage rates. He cautions people to wait for the housing index’s May print. A June “wobble” in the ISM Manufacturing series (17:55) caught Mayberry’s eye. While still in expansionary territory, the ISM Manufacturing index came in at 53.0 versus expectations of 54½. Meanwhile, the new orders component of the index printed 49.2, the first time since the COVID-19 recession of 2020. The market week of July 5-9, although abbreviated, promises to be a charged with macro news (22:24). Reports due include May durable goods (final) on Tuesday; on Wednesday, ISM Services, JOLTS jobs, Federal Open Market Committee Meeting minutes; and Friday nonfarm payrolls and unemployment rates.

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]