DoubleLine’s Sam Lau and Eric Dhall, a trader and quantitative analyst on the firm’s Cross Asset team who is subbing for Jeff Mayberry, wake up to a lot of red in the markets in this episode, recorded before end of trading on Sept. 16, 2022. Investors continued to react to Tuesday’s CPI print, with the S&P 500 tumbling (1:49) and the U.S. Treasury yield curve marking big moves higher, especially on the shorter end of the curve (3:53). The Agg was down almost a point week-to-date (5:32), underscoring that there was nowhere to hide in Fixed Income Land. There was also no love to be found in commodities (6:23) and Bitcoin (7:43). Gold’s low price, its cheapest level in some time, prompts Eric to wonder if goldbugs are being drawn to bonds’ improved yields: “Maybe they’d rather have some coupon in their pocket rather than just the pet rock to look at.”
In terms of Macro, the higher than expected CPI print overshadowed all other data, and Sam and Eric break down some of the concerning numbers, including those for medical care services and shelter (9:27). On the positive side, the labor market remains the U.S. economy’s one bright star (19:31). Next week will bring LEI, and manufacturing and services data, but the FOMC meeting and a possibly hefty rate hike looms large (26:17).
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.