Weekend Update 1/9/2022

Weekend Update recaps market highlights and major news from Ursa’s portfolio. Not on Ursa yet? Download Ursa from the App Store!

Fed minutes compound already Growth-cautious investors

💨👟  Fleeing growth. 2022 started right where 2021 ended with fear around lofty Growth valuations in a #RisingYields environment. While overall S&P 500 down -2% for week, heavy #Flight2Safety Value rotation all week with Growth underperforming Value by over 5%.

📝  Hawkish Fed minutes. Compounding already negative Growth sentiment, Fed Dec meeting notes released indicate quicker balance sheet reduction under consideration as well. Markets nose-dived Wednesday on an increasingly hawkish Fed trying to get #InflationFears under control. Meanwhile, 10-year treasury yield surge +17% while Financials rise +5%.

️🤷‍♂️  Ignoring Omicron surge. #COVID19 Omicron cases in 🇺🇸 breached 900K cases on Friday (over 3x last year’s holiday peak). Surge largely ignored by investors given expectation for milder symptoms. Hospitalizations rising back to last year’s peak levels and something we continue to monitor.

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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.