Spec-Broadening!?
Risk is well-bid evidenced by crypto surging out of its multi-month downtrend.
The view
In the past month, leaders in this group were starkly ARKG (continuing its strong uptrend from Q2) and IBIT surging higher in the past seven trading sessions.
Hedge fund managers across quant and discretionary strategies were saluting a broadening of upside participation in the marketplace. However, capital flows away from speculative AI pockets seem to be rolling into unprofitable biotech, and nearly insolvent crypto, which is creating headaches on the short side.
Global markets & economic data
- US
July Core PCE was in-line, rising by 0.2% and the latest Q2 GDP growth estimate is 1.5%, dropping from 2.1% in Q1. House prices ticked higher while new home sales trended lower.
- Switzerland/UK/Europe
The Swiss investor's sentiment index rose for a second consecutive month as the KOF Leading Indicators Index hit its highest level since November 2021. German's Ifo Business Climate Index hit its highest level in a year. UK's Aug Manufacturing PMI trended lower while Services PMI ticked higher.
- China/Japan
Headline Chinese FDI fell 6.2% y/y in July, but FDI in high-tech industries surged by 32%. Saudi Arabia, France and South Korea were the top net investors in China. Japan's leading economic index was revised slightly higher in June.
Disclaimer: This material has been prepared by MASTERPIECE ADVISORS for informational purposes only and should not be construed as financial advice. Investments in hedge funds are speculative and involve a high degree of risk. This material is confidential and may not be disclosed without the express written approval of MASTERPIECE ADVISORS.
Weekly market notes every Friday from Aaron Sweeney after the closing bell.