Following up on last week's twelve WTF charts [3], we thought it might be appropriate to look at the current equity market's efficient discounting knowledge relative to eight historically correlated risk-asset markets. What do stocks know that these markets are 'inefficiently' believing in?
1. Dr. Commodity appears to be less sure of the global growth expectations behind US equity prices...
2. The Treasury bond market is decidedly less enamored with growth...
[4]
3. Forward inflation expectations are diverging (less short-term inflation expectations relative to long-term)
[5]
4. And the credit market has been worried for 3 months...
[6]
5. As the USD correlation has brokem
[7]
6. And the Dow theorists are worrying with Dow Transports not amused...
[8]
7. But the bottom line is - Top-Down, Macro data is dismal
[9]
8. and Bottom-Up, Earnings expectations are bad to worse
[10]
So after all that - what do stocks know that everyone else doesn't?
Charts: Bloomberg