Per Bernstein, FOMO brought in a massive inflow to tech in the last 4 weeks.
This is because tech on an absolute and on a relative basis made it impossible to ignore, per Bernstein.
With ARKK up 50% YTD, investors have been exiting. Once with $30bn in AUM, now it’s $9bn, predominantly because of investment losses. Investors pulled $717mm out in the LTM—it’s probably folks who didn’t invest at the top (Feb 2021) but rather made some profits and are reading Bernstein research.
Where’s the next bull run? Per the FT, BlackRock expects bond funds to attract capital from money-market funds once the Fed stops raising rates.
China is getting hit in the news flow machine this morning, with Citi, MS and JPM cutting their China GDP forecasts to 5% this year. Official data came out that reflected lower consumer spending growth in June, and property investment contracting. With no sign of stimulus, folks are resetting expectations. Yellen came out and noted that there could be ripple effects across the global economy, although she’s still calling for good times here in the US. She also took a dig at China and said they failed to deal with the unfair trade practices that drove tariff hikes in the first place, mentioning that any moves to curb outbound US investment to China would be narrowly targeted and based solely on “national-security considerations.”
Russia ended its Ukraine grain-export deal at roughly a year into the agreement, coming on the heels of Ukraine blowing up its key bridge. The deal was important because it enabled 33mm tons of crop exports via the Black Sea, making sure that global food commodity prices remained lower. Now Turkey has to beg its buddy Russia to bring it back. Corn and wheat are 2 of the most important crops in the deal.
The US appeals court denied the FTC’s attempt to pause Activision Blizzard-Microsoft deal per Bloomberg.
Elon reported that Twitter’s ad revenue is down -50%, and the co is cash flow negative, according to Reuters. Kind of what happens when you alienate both users and advertisers.
The only S&P stock without analyst coverage? Loews. BBG posits that it is because it is a conglomerate, and its story has been a bit lackluster.
