July has been less than favorable towards cryptocurrency firms and hedge funds. In recent news, many companies tied to cryptocurrencies have filed for bankruptcy including Three Arrows Capital, Celsius, and Voyager.
The Bank of England had a steep decline in hawkish sentiment from our last report, while the Federal Reserve had a small uptick.
Total Returns and Seasonality, State of Inflation, Market-Based Expectations, ETF Flows, Shelter Inflation, Commodities, Search Trends
Supply chain concerns have faded into the background somewhat in the past couple weeks. There have not been any major shortages getting a lot of publicity since the baby formula debacle. The “shortage” currently occupying the news cycle, the pilot shortage, is more of a labor problem.
Fixed Income and Corporate Sector Returns, Options-Adjusted Spreads, Credit ETF Flows, Biggest Movers, and Issuance Recap
Commodities closed out the first half of the year continuing their slump. WTI crude was the only energy sub-index within the energy sector finishing the week in the green. Zinc had the largest weekly loss at -8.24% and lumber had the largest weekly gain at 10.52%.
Flow balance was mostly unchanged last week with the staple index funds (SPY, QQQ, etc.) raking in the largest share of in-flows. About half of positive flows over the past month have been distributed between Large/Mid-Cap and Broad Equity. US Government funds have gained some ground and now make up 28% of in-flows on a rolling 1-month basis.