The young new year has been all about reversion to the mean. Take the ARK Innovation ETF ARKK — Cathie Wood’s flagship fund of mostly unprofitable tech companies has stormed 19% higher in 2023, after last year’s 67% nose dive. The broader S&P 500 has gained 4% this year.
Kolanovic was a bull on the stock market for much of 2022, with an overweight equities call for nine months. But JPMorgan maintains its model portfolio actually outperformed the benchmark by 3.4 percentage points, owing to calls to underweight government bonds and overweight commodities. Its long dollar position and underweight on credit also helped.
The buzz The U.S. economics calendar includes retail sales and producer price data, both at 8:30 a.m.. Eastern, followed by industrial production. Shortly after the open, the NAHB housing market index and business inventories data will be released, and at 2 p.m., the Fed’s Beige Book will be released.Alcoa AA after the close is the highlight of the day’s scheduled earnings releases.Coinbase COIN says it is closing its Japanese operations.