DC Lite #15

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1. Bank margins. "Eight months after the SVB collapse, large banks continue to enjoy significantly lower funding costs and, hence, higher profit margins than regional banks."

2. Chicago Fed National Activity Index. The CFNAI points to a slowdown in economic growth in October, with declines in all 4 categories dropping the index to its lowest in 7 months.

3. Sentiment Composite. "There is somehow more opportunity right now (too much pessimism) than there is risk (too much optimism)."

4. Sell Side Indicator. BofA's indicator "declined 37bp in October to 53.1%, the biggest decline since October 2022. This level implies price returns of +16% over the next 12 months. (we are already half way there)."

5. HF crowding. "Hedge fund crowding is now the most extreme it has been in the 22 years that Goldman has tracked hedge fund positioning."