<\/p>\n
![\"\"](\"https:\/\/aptuscapitaladvisors.com\/wp-content\/uploads\/2023\/05\/CPI-Projections-Strategas-05.09-JL.png\")
Source: Strategas<\/p>\n
<\/p>\n
Brad:<\/em><\/strong> which would make it tough to get valuation support for already-expensive stocks<\/em><\/p>\n <\/p>\n <\/p>\n Dave:<\/strong> Net interest costs are rising significantly for the federal government<\/em><\/p>\n \u00a0<\/em><\/p>\n <\/p>\n Dave:<\/strong> as low rate Treasuries mature and get replaced by higher borrowing costs<\/em><\/p>\n <\/p>\n <\/p>\n Brad:<\/strong> leading to a significant expense for the federal budget<\/em><\/p>\n <\/p>\n <\/p>\n John Luke:<\/strong> The end of last 4 hiking cycles have ushered in a healthy period for both stocks and bonds<\/em><\/p>\n \u00a0<\/em><\/p>\n \u00a0<\/em><\/p>\n John Luke:<\/strong> but recent market optimism regarding coming rate cuts seems misguided<\/em><\/p>\n <\/p>\n <\/p>\n Dave:<\/strong> Earnings have been widely reported as \u201cbetter than expected\u201d but much of that is from reduced expectations coming in<\/em><\/p>\n <\/p>\n <\/p>\n Joseph:<\/strong> with hopes that the earnings trough is behind us seemingly at odds with history<\/em><\/p>\n <\/p>\n <\/p>\n Brad:<\/strong> and even the most optimistic scenarios not exactly inspiring for stocks<\/em><\/p>\n \u00a0<\/em><\/p>\n \u00a0<\/em><\/p>\n John Luke:<\/strong> Correlation regimes can last a long time, and the positive correlation b\/w stocks and bonds is still young compared to the prior regime<\/em><\/p>\n \u00a0<\/em><\/p>\n <\/p>\n John Luke:<\/strong> which could lead to continued ineffectiveness for bonds as a hedge for stocks<\/em><\/p>\n \u00a0<\/em><\/p>\n <\/p>\n \u00a0<\/strong><\/p>\n <\/p>\n Past performance is not indicative of future results. This material is not financial advice or an offer to sell any product. The information contained herein should not be considered a recommendation to purchase or sell any particular security. Forward-looking statements cannot be guaranteed.<\/em>\u00a0<\/em><\/p>\n Projections or other forward-looking statements regarding future financial performance of markets are only predictions and actual events or results may differ materially.<\/em><\/p>\n This commentary offers generalized research, not personalized investment advice. It is for informational purposes only and does not constitute a complete description of our investment services or performance. Nothing in this commentary should be interpreted to state or imply that past results are an indication of future investment returns. All investments involve risk and unless otherwise stated, are not guaranteed. Be sure to consult with an investment & tax professional before implementing any investment strategy. Investing involves risk. Principal loss is possible.<\/em><\/p>\n Advisory services are offered through Aptus Capital Advisors, LLC, a Registered Investment Adviser registered with the Securities and Exchange Commission. Registration does not imply a certain level or skill or training. More information about the advisor, its investment strategies and objectives, is included in the firm\u2019s Form ADV Part 2, which can be obtained, at no charge, by calling (251) 517-7198. Aptus Capital Advisors, LLC is headquartered in Fairhope, Alabama. ACA-2315-16.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Our team looks at a lot of research throughout each day. A few charts that caught our eye this week, and the way they fit the unfolding puzzle of evidence: John Luke: Tough to see how inflation can get down to the Fed\u2019s stated 2% target Source: Strategas Brad: which would make […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"footnotes":""},"categories":[20,194],"tags":[84,376,132,57,83,458,168,331,253],"class_list":["post-233773","post","type-post","status-publish","format-standard","hentry","category-blog","category-charts","tag-bonds","tag-debt","tag-earnings","tag-fed","tag-inflation","tag-interest-cost","tag-stocks","tag-treasuries","tag-valuation"],"yoast_head":"\n![\"\"](\"https:\/\/aptuscapitaladvisors.com\/wp-content\/uploads\/2023\/05\/CPI-and-Multiples-Strategas-05.09-Brad.png\")
Source: Strategas as of 05.09.2023<\/p>\n![\"\"](\"https:\/\/aptuscapitaladvisors.com\/wp-content\/uploads\/2023\/05\/Net-Interest-Cost-Strategas-05.08-Dave.png\")
Source: Strategas as of 05.09.2023<\/p>\n![\"\"](\"https:\/\/aptuscapitaladvisors.com\/wp-content\/uploads\/2023\/05\/Outstanding-Debt-Strategas-05.08-Dave.png\")
Source: Strategas as of 05.09.2023<\/p>\n![\"\"](\"https:\/\/aptuscapitaladvisors.com\/wp-content\/uploads\/2023\/05\/Federal-Interest-Costs-Strategas-05.08-Brad.png\")
Source: Strategas as of 05.09.2023<\/p>\n![\"\"](\"https:\/\/aptuscapitaladvisors.com\/wp-content\/uploads\/2023\/05\/Post-Hike-Performance-PGIM-05.08-JL.png\")
Data as of 05.08.2023<\/em><\/p>\n![\"\"](\"https:\/\/aptuscapitaladvisors.com\/wp-content\/uploads\/2023\/05\/Inflation_Goldman-5.8.23.png\")
Source: Goldman Sachs as of 05.08.2023<\/p>\n![\"\"](\"https:\/\/aptuscapitaladvisors.com\/wp-content\/uploads\/2023\/05\/Earnings-Beats-Morgan-Stanley-05.05-Dave.png\")
Source: Morgan Stanley as of 05.09.2023<\/p>\n![\"\"](\"https:\/\/aptuscapitaladvisors.com\/wp-content\/uploads\/2023\/05\/Earnings-and-Valuations-05.09-TS-Lombard-Joseph.png\")
Source: TS Lombard as of 05.09.2023<\/p>\n![\"\"](\"https:\/\/aptuscapitaladvisors.com\/wp-content\/uploads\/2023\/05\/Valuation-Outlook-05.09-Brad.png\")
Source: Sevens Report<\/p>\n![\"\"](\"https:\/\/aptuscapitaladvisors.com\/wp-content\/uploads\/2023\/05\/Stocks-and-Bonds-Down-13-Research-05.05-JL.jpg\")
Source: 3 Fourteen Research as of 05.06.2023<\/p>\n![\"\"](\"https:\/\/aptuscapitaladvisors.com\/wp-content\/uploads\/2023\/05\/Bonds-as-Hedge-3Fourteen-Numera-05.05-JL.jpg\")
Source: 3 Fourteen Research as of 05.08.2023<\/p>\n<\/h5>\n
Disclosures<\/strong><\/h5>\n