Amadeus Weekly 2022 W19

Fabian Scheler

May 14, 2022

Once a week we summarize the most important market developments and macroeconomic events in a brief chartbook.

2 Minute Read

Mankind invented a system to cope with the fact that we are so intrinsically lousy at manipulating numbers. It's called the graph.

Major equity markets, except for Europe, continued their losing streak this week, and the once high-flying tech corner of the U.S. stock market saw some pretty violent moves.
However, this week’s most significant developments were in the Crypto space, where Terra and Luna blew up, destroying billions in wealth overnight.
Meanwhile, implied volatility in the U.S. and the European stock market decreased despite a surge in realized volatility, triggering warnings that this drawdown may last longer. Government bond yields came back slightly amid market turmoils, finally yielding some diversification benefits.
In the U.S. and Europe, a stark divergence has evolved between business and consumer sentiment and consensus earnings forecasts. As a result, the question of who is right will be crucial for valuation support.