Investors sold long-duration growth and bought real assets as the yield curve steepened from the front
For equity holders, today punished companies whose value sits in distant cash flows. It rewarded companies that own something physical or collect a regulated return.
Only 4 of 12 sectors rose. Energy (1.00%), Materials (0.51%), Consumer Staples (0.49%) and Utilities (0.27%) held up, while Technology (-2.10%), Financials (-2.20%) and Consumer Discretionary (-2.23%) led the declines, a 3.23-point spread from top to bottom.
Since the last briefing
Yesterday the committee said rising short-term yields and oil risk were pushing money out of AI hardware and into energy, and raised its Stagflation Squeeze lean to 60/40.
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.