Is This a "Lose-Lose" Scenario for Stocks?

Real Vision: Finance & Investing

Real Vision

Business News, News, Investing, Business

4.1 • 1.1K Ratings

🗓️ 25 April 2022

⏱️ 37 minutes

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Summary

The major U.S. equity indexes were mixed Monday, with the Dow Jones Industrial Average and the S&P 500 in the red but the tech-heavy Nasdaq holding a modest gain on reports that Elon Musk is nearing a deal to take Twitter private. Investors continue to grapple with the fact that the Federal Reserve is aggressively tightening monetary policy into what appears to be a slowing economy. As Mark Ritchie II notes, this “feels like a potential lose-lose for riskier assets.” Ritchie II, managing partner and chief investment officer at RTM Capital Advisors, joins Maggie Lake for today’s Real Vision Daily Briefing to talk about recent price action, relative strength, and whether the Fed will be able to engineer a soft landing. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/3k8eqxw Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	Hi, everyone. Welcome to the Real Vision Daily Briefing. It's Monday, April 25th, 2022. I'm Maggie Lake,
0:11.2	and here with me today is Mark Richey, managing partner and chief investment officer of RTM Capital
0:17.7	Investors. Hi, Mark. How are you? Good, Maggie. Thanks for having me back. Yeah, and it's, and it's,
0:24.2	you know, a great time. I'm really interested to get your thoughts because we saw some pretty
0:30.0	interesting market action today, including we got to start with, right? The news that Elon Musk
0:34.8	is successfully buying Twitter after all the back and forth around that $54.20 is share,
0:40.5	$44 billion deal. He's going to be taking the company private. Twitter has been blowing up
0:47.0	with the news that he's buying Twitter, and I'm sure there's going to be a lot of opinions about
0:50.3	that, but it almost sort of overshadowed the fact that we saw a broad rebound in equity markets
0:56.5	after that really ugly close on Friday. We opened lower, but they came back and they've actually
1:02.2	been sort of rallying into the close, which is interesting. The Dow up about a half a percent,
1:07.2	no, actually three quarters of a percent, S&P 500 to half a percent, NASDAQ, the best performer
1:12.8	up 1.26%. We saw the yields on the 10-year treasury back away from 3% hovering around 2.82,
1:21.5	and the VIX edge down, but interestingly, that's sort of sticking at an elevated level around 27.
1:27.8	So, when you put it all together, I mean, what did you make of this trading session, especially
1:32.0	that equity turnaround? Right. Today was kind of interesting, and in some ways is just sort of a
1:38.5	microcosm, I think, really of the year and kind of the type of market we're in. This is sort of classic
1:45.4	bear market type action, in my view, where we don't have a strong bid under the market, which was
1:52.8	really evident at the end of last week, where the market got clobbered pretty good Thursday and
1:58.4	Friday, and even on Friday, we didn't even have much volume, and it was just that sort of that classic
2:04.3	45-degree upper left to lower right in your screen, where it just marched lower all day.
2:12.0	Today, we opened Soft, which I would have expected. That's pretty normal after a bad Friday close,
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