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Printed: 29 May 2024 6:34 AM


1 May 2024 - 10k Words | April 2024

By: Equitable Investors

10k Words

Equitable Investors

April 2024

Bond demand on the slide as inflation expectations climb and the equity risk premium hits a multi-decade low, with the correlation between equities and bond yields turning more negative. The largest stocks continue to crowd out the market. Over in Japan the key equities index has finally returned to its pre-1990 peak. More listed equity is being bought back than issued as IPO activity remains stagnant. Finally we look at shifting volatility and benchmark returns for the March quarter.

Biggest monthly drop in Fund Manager Survey bond allocation since July 2003

Source: Bank of America Global Fund Manager Survey

Market implied US inflation over the next five years

Source: Bloomberg, @lisaabramowicz1

US equity risk premium at a 22 year low

Source: Bloomberg

Rolling 2-month correlation between US equities & 10-year bond yields


Source: Morgan Stanley Research via @Schuldensuehner

Market cap of the largest stock relative to the 75th percentile stock

Source: @LanceRoberts,

Small cap stocks <4% of US equity market

Source: KobeissiLetter (data from CRSP, The University of Chicago Booth School of Business, Jefferies)

Japan's Nikkei 225 finally recovers to its 1999 record

Source: Equitable Investors, Koyfin

Net share issuance by companies on MSCI All Country World Index, adjusted for price and currency changes ($US billion)

Source: Financial Times

Global IPOs by quarter

Source: WSJ, Dealogic

Changes in US bond volatility (MOVE, RHS) v US equity (VIX, LHS) & Aus equity (ASX 200 VIX, LHS)

Source: Iress, Equitable Investors

Volatility benchmarks v average since July 2021 and move last week

Source: Iress, Equitable Investors

March Quarter (3 months) performance of key benchmarks and our "FIT" universe of ASX micro-to-mid caps


Source: Iress, GuruFocus, Equitable Investors

April 2024 Edition

Funds operated by this manager:

Equitable Investors Dragonfly Fund


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