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<p>Equal weighting in portfolio design presents both benefits and drawbacks. The suitability of this unbiased, model-free strategy remains a topic of discussion. Nonetheless, when it comes to benchmarking, there is a compelling argument for incorporating it into your analysis.</p>
<div class="entry-content">Anticipation builds as the government prepares to release the second-quarter US economic data, expected to reflect growth surpassing Q1’s significant increase. However, the latest nowcasts indicate yet another downward revision from previous estimates for Q2.
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<p>* The IMF cautions that rising inflation may be <a href="https://www.cnbc.com/2021/07/27/imf-warns-that-inflation-could-prove-to-be-persistent.html">more than just temporary</a><br/>* The focus today is on the <a href="https://www.wsj.com/articles/fed-meeting-will-focus-on-tapering-timeline-11627464602?mod=hp_lead_pos2">press conference</a> with Fed's Powell regarding tapering timelines<br/>* Major tech companies like Apple, Microsoft, and Google <a href="https://www.usatoday.com/story/tech/2021/07/27/apple-iphone-microsoft-google-earnings-blowout/5394768001/">report significant profits for Q2</a><br/>* Is the recent decline in Chinese stocks a potential buying opportunity? <a href="https://www.cnbc.com/2021/07/28/ubs-warns-that-its-not-time-to-bottom-fish-in-the-chinese-markets-yet.html">Not yet, according to UBS</a><br/>* US durable goods orders <a href="https://www.wsj.com/articles/durable-goods-orders-advanced-in-june-as-u-s-economy-continues-to-grow-11627390155">continued to rise</a> in June<br/>* The US Consumer Confidence Index <a href="https://conference-board.org/data/consumerconfidence.cfm">increased</a> in July, reaching a new pandemic high<br/>* US house <a href="https://www.cnbc.com/2021/07/27/home-prices-broke-records-in-may-according-to-sp-case-shiller.html">prices increased</a> further, setting new records in May:</p>
<div class="entry-content">Goldman Sachs has revised its forecast for US economic growth for the latter half of this year, citing slower activity within the services sector and the challenges posed by the Covid-19 Delta variant. This adjustment aligns with a new metric introduced by CapitalSpectator.com: the US Macro Trend Index (MTI).
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<p>* A recent US-China meeting <a href="https://www.cnn.com/2021/07/26/politics/us-china-sherman-tense-meetings/index.html">resulted in tension</a> as high-level officials discussed key issues on Monday<br/>* Will the Fed’s <a href="https://www.nytimes.com/2021/07/26/business/economy/inflation-rise.html">approach</a> to managing inflation be effective?<br/>* US real yields <a href="https://www.ft.com/content/71d6661d-7a62-4a5f-959b-4cb2f1e94d68">have dropped</a> to all-time lows<br/>* Survey results <a href="https://www.wsj.com/articles/a-key-gauge-of-future-inflation-is-easing-11627291800">indicate</a> inflation may be peaking<br/>* Goldman Sachs <a href="https://www.cnn.com/2021/07/26/economy/goldman-sachs-services-economy-delta/index.html">has cut</a> its growth forecast for the second half of 2021<br/>* Emerging market stocks <a href="https://www.bloomberg.com/news/articles/2021-07-27/emerging-market-stocks-have-wiped-out-all-their-gains-this-year">are now in the red</a> for the year<br/>* S. Korea's economy <a href="https://www.cnbc.com/2021/07/27/south-korea-second-quarter-gdp-hits-decade-high-but-covid-risks-loom.html">grew</a> at its fastest pace in a decade during Q2<br/>* Tesla <a href="https://www.wsj.com/articles/tesla-tsla-2q-earnings-report-2021-11627176617?mod=hp_lead_pos4">reported</a> record high profits for the quarter<br/>* New US home sales <a href="https://www.bloomberg.com/news/articles/2021-07-26/u-s-new-home-sales-unexpectedly-fall-to-lowest-since-april-2020">continued to decline</a> in June, reaching their lowest since April 2020:</p>
<div class="entry-content">American equities saw a robust rebound over the trading week concluding on Friday, July 23, achieving the highest gains across major asset classes, as reflected in a selection of exchange-traded funds.
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<p>* Dr. Fauci <a href="https://www.cnn.com/2021/07/25/politics/anthony-fauci-covid-19-unvaccinated-cnntv/index.html">expresses concerns</a> that the US might be heading in the ‘wrong direction’ again with rising Covid-19 cases<br/>* An <a href="https://www.cnbc.com/2021/07/26/us-china-tianjin-meeting-wendy-sherman-xie-feng-wang-yi.html">initially tense meeting</a> with US and China officials took place; a Chinese representative claimed their relations are currently in a ‘stalemate’<br/>* An economist <a href="https://www.cnbc.com/2021/07/26/action-on-climate-change-can-boost-global-economy-economist-says.html">forecasts</a> that tackling climate change could stimulate the global economy<br/>* US population growth, which may soon decline, is<br/><a href="https://www.wsj.com/articles/u-s-population-growth-slows-birth-rate-decline-economic-risk-11627231536?mod=hp_lead_pos10">presenting economic challenges</a><br/>* Public and bond market predictions <a href="https://www.wsj.com/articles/a-key-gauge-of-future-inflation-is-easing-11627291800?mod=hp_lead_pos3">indicate</a> that inflation pressures are easing<br/>* US real 10-year yields have dropped to a <a href="https://www.bloomberg.com/news/articles/2021-07-26/u-s-real-yields-fall-to-record-low-amid-growth-concerns?srnd=premium">record low</a> amid rising growth apprehensions<br/>* The NABE survey predicts that US labor shortages and inflation pressures <a href="https://www.bloomberg.com/news/articles/2021-07-26/u-s-labor-shortages-price-pressures-to-continue-survey-shows?srnd=economics-vp">are likely to continue</a><br/>* A legendary strategist speculates that indexing guarantees top-quartile performance <a href="https://www.marketwatch.com/story/investing-pioneer-charles-ellis-says-youre-just-about-guaranteed-to-get-top-returns-in-the-stock-market-using-this-method-11626963950?redirect=amp">in the stock market</a><br/>* New estimates suggest that US economic growth <a href="https://www.markiteconomics.com/Public/Home/PressRelease/5c13aaa0acb3461eb9acd7113cd2bb40">has slowed</a> in July due to a slowdown in services:</p>
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<p>In the previous week (ending Friday, July 23), our suite of proprietary strategies continued to lag behind their common benchmark, with variances ranging from minor to considerable.</p>
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<p><a href="https://www.amazon.com/gp/product/1788734149/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1788734149&linkCode=as2&tag=thecapitalspe-20&linkId=7ac4c79080fcf03b20614bd1dc9280a1" target="_blank" rel="noopener"><img decoding="async" class="alignleft" src="https://ws-na.amazon-adsystem.com/widgets/q?_encoding=UTF8&MarketPlace=US&ASIN=1788734149&ServiceVersion=20070822&ID=AsinImage&WS=1&Format=_SL250_&tag=thecapitalspe-20" border="0"/></a>● <a href="https://www.amazon.com/gp/product/1788734149/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1788734149&linkCode=as2&tag=thecapitalspe-20&linkId=892fef6d6feb7e28ff5c303caec308bf" target="_blank" rel="noopener">The Great Adaptation: Climate, Capitalism and Catastrophe</a><br/>Romain Felli<br/><strong><a href="https://www.versobooks.com/books/3797-the-great-adaptation">Summary</a> via publisher (Verso Books)</strong><br/>This book explores how scientists, governments, and corporations respond to the challenges posed by climate change, advocating for adaptation rather than combating its root causes. Since the 1970s, proponents of neoliberalism have leveraged climate change to justify increased societal “flexibility” and promote market-driven solutions. The Great Adaptation reveals the political economy driving this influential movement and illustrates how some influential entities profit amidst the peril of climate change.</p>
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<p><em>* US stocks see a resurgence, concluding the week at unprecedented highs</em><br/><em>* Portfolio strategy benchmarks achieve remarkable gains this trading week</em></p>
