Energy holds up alone as metals, consumer and staples fall and short yields rise
For equity holders, the one hedge that worked today was energy cash flow; gold miners and other hard assets fell hard, so they cannot be counted on as protection.
Energy was the only sector with a real gain, up 1.79% and 4.43% over five sessions. Technology's 0.03% was noise. Ten of twelve sectors fell, and Materials was worst at -2.24%, dragged down by gold miners and Alcoa.
Since the last briefing
Yesterday the committee moved to 60/40 on a Stagflation Squeeze: a boxed-in Fed and war-driven inflation leaving only energy standing. Today confirmed the core of that.
What drove the session and how it transmitted, the exposure table by persistence grade, where the committee disagreed, its verdict and weighting, and the falsifiers that would prove it wrong.