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Macro Minute: Week of June 5, 2023

For the inaugural Macro Minute, I would like to highlight three interesting observations I recently came across on Twitter. As a side note, I’m an active user on Twitter (@wesj22), and I find it to be a valuable source of information. I’m continually amazed by the accessibility of brilliant investors on the platform and the wealth of valuable insights they share freely.

Let’s delve into the first chart, which I’ve encountered multiple times over the past week. It’s sourced from Bloomberg, and as someone who believes in the adage “history rhymes, but doesn’t repeat,” this chart raises some concerns for me. It shows that the underperformance of the NASDAQ compared to small-cap stocks last year has been completely erased. I must give a shout out to my buddy Chase Taylor from Pinecone Macro and now Bulwark Capitol, who has been correct in calling for small caps being the heaviest hit by this banking crisis we are having, and that is showing up in this chart, too.

Moving on, Eric Nelson (@ServoWealth) frequently shares Dimensional research on Twitter. The next chart he posted is pretty self-explanatory, highlighting the erratic nature of returns year to year, even though they average out to 10%. Charts like this emphasize why it is extremely difficult to time the market.

Lastly, I want to draw your attention to an interview that Cliff Asness did with David Rubenstein for Bloomberg. One key takeaway that I had was just how attractive the value factor remains even after a year of stellar performance. 

That’s it for the first Macro Minute. This one is a little longer than I expect them to be going forward, but I wanted to give something extra for any intrepid individuals signing up. As always If you feel we at Longview can help you on your financial journey please don’t hesitate to reach out and feel free to share this with anyone.


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