📑 Research Notes for 2023-01-02
This week, we look a challenging past year for both stocks and bonds, additional challenges in the credit markets, risks in high-yield bonds, and a closer Russia-China military tie.
We conduct extensive investment research and share the most interesting content that we come across every week. Here is a curated list of this week’s top observations.
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After $18 Trillion Rout, Global Stocks Face More Hurdles in 2023.
More tech tantrums. China’s Covid surge. And above all, no central banks riding to the rescue if things go wrong. Reeling from a record $18 trillion wipeout, global stocks must surmount all these hurdles and more if they are to escape a second straight year in the red.
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Big Pile of Trouble: Credit Market Cracks Widen.
Multiple stress points are emerging in credit markets after years of excess, from banks stuck with piles of buyout debt, a pension blow-up in the UK and real-estate troubles in China and South Korea. With cheap money becoming a thing of the past, those may just be the start.
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The Junk Bond Reckoning Is Coming in 2023.
Ever so subtly, the high interest rates of the past year have started to separate the viable businesses from the ones sustained by cheap money. Expect 2023 to kick that process into high gear.
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Russia Seeks Closer Military Ties with China.
Vladimir Putin has called for closer military cooperation with China. The Russian president was speaking during a video summit with the Chinese leader Xi Jinping. Though Beijing has not condemned the war in Ukraine, it has also not provided Russia with any direct support. Moscow's latest airstrikes have left most of Ukraine without power.
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Last Week’s Market Performance Heatmap
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Curated by Joseph Lu, CFA®
Joseph is the founder and a managing director of Conscious Capital Advisors, as well as a CFA® Charterholder.
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