Needed Context for Rising Yields
What’s in Today’s Report:
- Needed Context for Rising Yields
- What Could Push Yields Lower (Four Candidates)
Futures are little changed despite higher oil prices as President Trump threatened an “economic D-Day” for Iran.
President Trump threatened dramatic economic sanctions on countries with economic ties to Iran, increasing odds of a Iranian military response and pushing oil prices higher.
Focus today will be on yields and whether they recoup Wednesday’s losses or not. Impacting that will be, in order of importance: Oil prices (do they rise further than the current 2% rally) and economic data (does it come in hot or not?).
Economically, important reports today include Jobless Claims (E: 211K), Philly Fed (E: 25.0) and Leading Indicators (E: 0.1%) and the more “in-line” they are with expectations, the better (especially the Philly price indices).
Outside of economic data, there is one Fed speaker, Musalem (11:10 a.m. ET) and some notable retail earnings: WMT ($0.73), BABA ($1.94), DE ($4.79), AAP ($0.81), ROST ($1.93).
The AI Trade Is Getting Bigger
AI may be one of the defining investment themes of the next decade. But that doesn’t mean today’s AI winners will remain tomorrow’s leaders.
In Tuesday’s issue of Sevens Report Alpha, we examined how investors can maintain meaningful long-term exposure to AI without making a concentrated bet on a handful of stocks. The report looks beyond the current chip and data center boom to the broader AI ecosystem, and how leadership could shift as the technology matures.
Most importantly, we outline three distinct approaches to gaining long-term AI exposure, including the trade-offs in diversification, concentration, flexibility, and cost.
If you believe AI is here to stay, follow the link below to read our most recent Alpha issue and see how I think investors can best participate.
