According to Morgan Stanley’s Mike Wilson, investors should stay bullish on equities ahead of this week’s US midterm elections. Polls pointing to Republicans winning at least one chamber of Congress provide a potential catalyst for lower bond yields and higher equity prices, which would be enough to keep the bear-market rally going…
Macro Chart In Focus
Analyst Team Note:
Opportunity cost continues to increase as HY savings rates near 3.00%… There’s actually competition for capital now, compared to the past few years when it was clear equities were the ‘only option’.
“The ISM Prices Paid index for manufacturing last month dipped below 50, taken as the dividing line between expansion and recession. The supply shocks driven by the pandemic really do look now as though they have worked their way through the US manufacturing complex. The equivalent index for services prices ticked up slightly, so this is not an unalloyed positive, but again it looks as though the peak is in” - Bloomberg
Chart That Caught Our Eye
Analyst Team Note:
Central banks bought 400 metric tons of gold in Q3, according to the World Gold Council. That’s a record inflow on par with what they’d purchase over a whole year in normal times.
We want to take a moment to thank Interactive Brokers for being one of our Channel’s trusted Partners and to inform my audience of the special features they have given that our online friends here closely follow Chinese Internet stocks (BABA/Tencent).
Much of Larry’s audience is concerned about the US ADR issue of Chinese Stocks being delisted.
