Three for the road:
1: Investor sentiment, as measured by TD Ameritrade’s Investor Movement Index (IMX) continued to erode through November, despite the rally that began mid-October.
The IMX is designed to indicate the sentiment of retail investors. Within the index, the sector mix only showed buying interest in three S&P 500 sectors: Consumer Discretionary, Energy, and Utilities. Selling was strongest in the Information Technology sector.
The chart below compares the IMX against the S&P 500.
2: There are signs that deflation pressures are mounting. One such sign is the collapse in lumber prices, falling to pre-pandemic levels. Another sign is the plummeting cost of shipping a container from Shanghai to a composite of destinations.
3: Anecdotal evidence (aka the rumour mill) indicates real estate markets continue to deteriorate to a degree that has yet to be incorporated into prices. According to a sampling of mortgage brokers and real estate agents, deal volumes have collapsed.