With increasing doom and gloom narratives infecting market participants, this latest installment of Real-Time with Jordi Visser focuses on how the market and economic data continue to climb the wall of worry.
In this Bloomberg deep-dive, Jordi notes that regional bank contagion has not had the much-anticipated impact on credit or other asset classes. He points out the scale of the problem: the entire regional bank sector market cap is around 300B, which is smaller than the market cap of JP Morgan and the recent Fed balance sheet injection.
For the economy, Jordi points to recent home and auto sales stabilization, strength in service ISM, a surprising earnings picture, and strength in wages and job growth to illustrate market health and a lack of systemic contagion. Finally, Jordi compares the recent AI innovation enthusiasm from a crisis of confidence with the Apple iPhone enthusiasm during the wall of worry in 2009 coming out of the GFC. He believes positive innovation stories are necessary to turn sentiment for the broader market.
About These Videos: Our market videos seek to provide a data-focused interpretation of the market's most critical developments. Real-Time with Jordi Visser is a recurring series produced by our President and CIO based on his macro views. The purpose of his series is to isolate macroeconomic indicators ("green marbles") that are telling the true story of the market, rather than relying on the narratives or stories often portrayed as news. Jordi is a unique thinker and tends to publish these videos during market dislocations/regime shifts when he sees areas where his views differ from consensus sentiment.
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