Let's take a quick look at the charts and see what changed over the past month.

As usual, let's start by looking at interest rates. With falling yields, both stocks and bonds recovered in March.

Long-term yields fell faster than short-term yields, causing the Yield Curve to invert further into red territory. An inverted yield curve implies that investors expect the FED to cut (short-term) rates. Short-term rates fall when economic growth is weak, which is why an inverted curve is often considered to be a predictor of an economic recession.

On March 6th Credit Spreads between Baa- and Aaa-rated corporate bonds reached the lowest level since 2009. The Spread for Mortgages rose again and got closer to the November 2022 high.

M2 year-over-year growth continued to fall along with CPI inflation. However, in absolute terms it looks much less impressive as M2 Money Stock is slowly declining from its 2022 highs after a huge increase in 2020, which was driven by government spending to stimulate the economy during the COVID-19 recession.

With falling yields and stable inflation expectations, real yields fell, which was supportive for Gold prices.

Silver rose faster than Gold, causing the Gold/Silver Ratio to fall. The US Dollar Index followed accordingly.

Mining Stocks rose along with Gold and Silver, however, they have been underperforming the metals over the previous year.

With rising Gold prices, the Real Estate/Gold Ratio and the Oil/Gold Ratio fell.

Adjusted for inflation, Real US Home Prices have been falling since May 2022.

With Yields stabilizing or even falling, Growth stocks have been outperforming Value stocks since the beginning of the year. Accordingly, the Nasdaq has been outperforming the S&P 500.

Despite stable inflation expectations, small-cap stocks have been underperforming large-cap stocks.

Looking at US Stock Market Sectors since the beginning of the year, the big losers have been Healthcare and Financials while Technology stocks led the market.

Looking at Emerging Markets over a 20 year time frame, they outperformed Developed Markets until 2010 and have been underperforming ever since.

Finally, looking at Crypto, since the beginning of the year Bitcoin and Ether are up 76% and 58% respectively after a very turbulent 2022. Together, they make up over 67% of the total Crypto Market Cap.

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