Brazil EWZ Surged 12.54%

Monday delivered a pro-cyclical rotation. Brazil EWZ led, and leadership concentrated in higher-beta risk assets.

International equities led

Movers

Leaders: Brazil EWZ +12.54% (3M: +24.1%), China MCHI +2.03% (3M: +1.0%)

Laggards: Real Estate XLRE -0.34% (3M: -8.6%), Value Factor VLUE -0.22% (3M: +4.6%)

3M Leaderboard

Strong: Brazil EWZ +24.1%, Energy XLE +16.8%, Taiwan EWT +15.8%

Weak: Utilities XLU -11.9%, Real Estate XLRE -8.6%, Industrials XLI -6.5%

Counter-trend rally in EM and muni debt, duration lagged

Movers

Leaders: EM Sovereign Bonds EMB +0.22% (3M: -4.5%), Muni Bonds MUB +0.16% (3M: -4.9%)

Laggards: Long Treasuries TLT -0.48% (3M: -7.7%), Preferred Stock PFF -0.24% (3M: -1.9%)

3M Leaderboard

Strong: Short TIPS VTIP -0.6%, Short Corporate VCSH -0.9%, Global Bonds BNDX -1.8%

Weak: Long Treasuries TLT -7.7%, Muni Bonds MUB -4.9%, EM Sovereign Bonds EMB -4.5%

Crypto proxies led, real estate weakness deepened

Movers

Leaders: Bitcoin Trust IBIT +1.74% (3M: +34.3%), Ethereum Trust ETHA +1.59% (3M: +51.2%)

Laggards: Global REITs REET -0.43% (3M: -8.4%), Gold Miners GDX -0.41% (3M: +15.4%)

3M Leaderboard

Strong: Ethereum Trust ETHA +51.2%, Bitcoin Trust IBIT +34.3%, Gold Miners GDX +15.4%

Weak: Clean Energy ICLN -10.6%, Real Estate VNQ -8.6%, Global REITs REET -8.4%

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Romain Gandon
CEO, Quantlake

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Past performance is not indicative of future results.