Letters From Larry is brought to you by our friends at YCharts. With YCharts, each output is a powerful visual that brings your analyses to life and intuitively explains the “why” behind your strategy. Go beyond a simple price chart and educate clients about the levers that truly impact performance or risk—and emphasize your most important insights with tailored proposal reports designed with custom talking points, compliance-approved messaging, and seamless personalization options for importing marketing collateral and firm branding.
Click here to start your free YCharts trial and get 15% off your initial YCharts Professional subscription when you tell them I sent you (new customers only).”
Key Investing Resource: Strategist Larry uses Interactive Brokers as his core brokerage. Feel free to check out IB. I currently park excess cash at Interactive Brokers. Check it out. It’s a great brokerage.
In our emails, we will provide the following coverage points:
Bitcoin ETFs have attracted substantial flows, with BlackRock’s IBIT alone bringing in a record $612 million in a single day.
This influx of funds is likely driven by the fear of missing out on the crypto rally and underscores the basic principle of supply and demand affecting Bitcoin's price. Since there’s no underlying cash flows or value, high demand is all that’s needed.
Macro Chart In Focus
Analyst Team Note:
According to buy-siders, inflation worries are behind us…
The majority of BofA Global Fund Manager Survey investors expect lower short-term rates (90%) and lower inflation (77%); only 4% expect higher short-term rates while only 7% expect inflation to rise.
Only 7% of respondents cite inflation as the biggest risk to US equities this year
In late February, US consumer sentiment experienced a significant decline, reversing earlier optimism observed in the month. The University of Michigan's final February survey reported a drop in the sentiment index to 76.9 from an initial reading of 79.6, marking the largest decrease since March 2020.
Consumers' inflation expectations for the coming year increased slightly to 3% from 2.9%, while their long-term outlook remained stable at 2.9%.
The decline in sentiment varied by political affiliation, with Republicans showing improved views and Democrats experiencing a notable decrease.
Chart That Caught Our Eye
Analyst Team Note:
After over two years, retail investors are almost back to breakeven. A recent chart by Vanda Research shows that the average retail investor portfolio still sports a drawdown despite the markets making new all-time highs.
Sentiment Check
Make sure to check Larry’s most recent market updates via his personal newsletter.
