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The Fed pauses rate hikes, whats next?

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Market Headlines 👀 

• US Federal Reserve announced a pause to rate hikes today, but expects to hike again in the future.

• US May PPI (Price Producer Index) came in at 1.1% YoY; est 1.5%.

• Alphabet (GOOGL) faces potential break up order in the EU over its anti-competitive ad tech business.

• SoFi Technologies (SOFI) stock continues to record run over optimism around restart of student loan payments.

• TikTok US congress proposed a new bi-partisan bill to further protect US user data.

• Charles Schwab (SCHW) expects up to a 11% revenue decline next quarter.

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.

Today’s Liquid Alts Are A Terrible Deal For Investors: Managers of liquid alts have promised strong returns, low market correlation and better risk/return than typical stock and bond managers. Investors have been disappointed, seeing returns that barely beat cash over decades.

Despite this poor performance, managers have pocketed roughly 300bps of fees each year. That makes the nearly $100bln AUM liquid alts products the most unbalanced in favor of managers versus investors across the financial industry.

Further analysis — > Read more !

S&P 500 Heap Map

Recap Around the Street 🧠

Key points from the US Fed FOMC meeting today highlighted below:

Market Preview 🎞️

• Thursday, June 15th: US initial weekly jobless claims; Retail sales data; Philadelphia Business outlook

• Friday, June 16th: OPEX expirations; New York Fed services business activity; University of Michigan sentiment and inflation expectations

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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