Welcome Back,

Jerome Powell back on the mic today.

Together with 🤝🏽

Market Headlines 👀 

• Fed Chair Jerome Powell has bi-annual testimony with Congress and reiterates 2% inflation goal and potential two more rate hikes this year.

• FTC Federal Trade Commission is suing Amazon for inducing users to sign up for Amazon prime.

• Tesla (TSLA) Elon Musk meets with Prime minister Modi in New York and states he has a interest in making a big investment in India.

• UK CPI comes in at 8.7% for the month of May.

• Wisdomtree (WT) is looking to file for a Bitcoin ETF following BlackRock’s application.

• Root (ROOT) car insurance startup receives a buyout offer from Embedded Insurance.

S&P 500 Heap Map

A Note From Unlimited Funds

Bob Elliott, a former investment committee executive from Bridgewater Associates, has moved into his newest venture - Unlimited Funds, a startup ETF issuer. The firm’s mission is to help investors access returns of sophisticated investment strategies. A prominent voice in the financial community on Twitter, Bob will provide research and insights through the month in this section daily.

Stocks Need Easy Money to Consistently Outperform Hedge Funds: Stock indexes have outperformed hedge funds by quite a bit this year. As of late May, the NASDAQ is up 30%, the S&P 500 is up 10%, and the hedge fund industry is roughly flat. With such divergent performance, have hedge funds lost their edge or is something else going on?

Over the last 20+ years,during periods of near zero rate policy, stocks performed much better than hedge funds (though hedge fund risk/return remained superior). In periods where interest rates were even modestly above zero, hedge funds performed considerably better. In short, consistent outperformance of stocks relative to hedge funds required sustained easy money – that’s an era that isn't soon to return.

Further analysis — > Read more !

Recap Around the Street 🧠

Bear market over for now? It looks like it at the moment, as $SPX has broken key resistance levels, can we hold?

Market Preview 🎞️

• Thursday, June 22nd: US initial weekly jobless claims; Existing home sales

• Friday, June 23rd: Kansas City Fed services activity

That’s all for today, folks! We’ll be back around the same time tomorrow with a curated list of important news, economic data and market highlights. 

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