"By now, most investors are aware of the fact that as of March 31st, the Fed wound down its purchase program of mortgage backed securities (MBS)," BIG says. "With the end of the program, one widely held opinion was that interest rates on US Treasuries as well as the spreads between MBS and Treasuries would rise." True enough. That was conventional wisdom. "[T]
"The Baltic Dry Index, which measures changes in the cost to ship goods by sea, is about as volatile as an option contract," B.I.G. observes. "Since December 2008, the index has risen by 547%, fallen by 50%, risen by 115%, and is currently down 42% since November 19th." Useful chart following the link.
Two graphics at B.I.G. showing the sector weightings of money managers versus the sector weightings of the S&P 500. "[M]oney managers collectively have 18.5% of their long portfolios in the Financial sector, which is the highest weighting for any sector," B.I.G. notes. "Technology ranks second at 16.8%, followed by Health Care (12.9%), Energy (12%), and Industrials (10.3