Earnings season is now in full flow and we’re getting an insightful real-time look into how companies are viewing the joint squeeze of inflation and recession fears. As previously outlined, the big US financial’s were first out of the blocks with the deposit flows post the SVB collapse painting an interesting picture. Equities have continued to grind higher, and whilst the narrowness of the recent gains (in terms of companies contributing to it) has been garnering some attention, we hold our positioning for the time being.
Finally, we appreciate a flexible turn of phrase as much as the next person, and therefore some of the commentary around the Space X rocket launch last week caught our attention. The rocket didn’t get very far (although this wasn’t necessarily a failure) and was characterised as a ‘rapid unscheduled disassembly’ (RUD). That’s an explosion, or a crash, to you and me. Given that sections of the financial journalism field tend to lean towards hyperbole, it will be interesting to see when the first ‘RUD’ is reported on within investment markets.
As always, if you wish to discuss anything in further detail, please do get in touch.