DC Lite #276

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Administrative note: DC will be off this Thursday, January 9th.

1. Rent prices. "Rents are down 0.6% on both a month-over-month and year-over-year basis."

2. ISM Services. "The prices index of the ISM services survey was ugly today, but don't get overexcited. The index is pretty volatile and often swings up and down without this ever showing up in the inflation numbers. We had a similar scare last January that ended up being a big fat nothing."

3. Stocks vs. bonds. With the correlation between rates and equities turning "decisively negative," higher yields represent a headwind to equity returns and multiples.

4. Sentiment. "From elation to panic within 6 weeks...Prior periods of panic were buying opportunities."

5. Sector correlations. "Average S&P 500 sector correlations to the index suggest the bull market that started in late 2022 is alive and well. Current readings are close to average and therefore point to reasonable (rather than excessive) investor confidence."