Silver remains the best performer YTD and the Long Bond the worst performer but what is most notable is the quiet serenity of the equity rally continued through March as Commodities, Precious Metals, Treasuries, and Corporate Bonds all lost notable ground post LTRO2. Is equity keeping the dream alive as the liquidity spigot has slowed to a drop (for now)? AAPL had it largest 2-day drop for almost 4 months into quarter-end - ending under $600 - and the broad S&P 500 pulled away once again from credit yesterday and today as IG, HY, and HYG close practically unchanged from last Friday's low but the ES up 15-20pts. Of the S&P sectors, Energy was the only one to fall appreciably post LTRO2 with Utilities the only sector in the red YTD -2.6% as Financials +21.5% and Tech +18.5% dominate.
YTD performance of major asset classes - note the selloff in everything post LTRO2 (liquidity) except stocks...
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Credit markets remain far less sanguine once again as the S&P 500 surged again away from credit which is practically unchanged on the week...
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IG, HY, and TSYs all lost ground in March following the LTRO2 but stocks strolled happily onwards...
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AAPL suffered its largest 2-day drop in four months (since the rally began) and closed the quarter under $600...
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S&P sectors show Utes the only one in the red -2.6% while Financials and Tech dominate and post LTRO2, Energy is the only sector appreciably lower...
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Charts: Bloomberg