Latest in Markets - 11/23/2021

Latest In Markets - Jerome Powell Re-appointed


The Biden administration announced that Jerome Powell will serve a second term as FOMC Chair, while Lael Brainard, the front runner to replace Powell, will serve as vice chair. The widely held belief is that Lael Brainard has a more dovish monetary policy stance than Powell.


Markets, unsurprisingly, reacted hawkishly to this news, with:


· Front-end rates moving higher


· Gold selling off


· New highs in the U.S. Dollar


· Significant dispersion in the equity market, with value leading growth, and continued extreme selling in what most would consider “long duration” equities despite U.S. indices at/near all time highs.

o “Expensive Software” -6.4% / -4.1 SD

o “Non-Profitable Tech” -5.3% / -2.8 SD

o “Recent Liquid IPO’s” -4.75% / -2.9 SD

o “Metaverse Stocks” -4.2% / -3.2 SD

o “Secular Growth” -2.88% / -2.8 SD

o “US Internet Retail” -4% / -2.8 SD


(Source: www.koyfin.com)


The Bottom Line


This was certainly an interesting and unusual day in markets. Have any questions? Feel free to reach out to Gary@invariantinvestments.com.