Asks about the interplay between oil prices and the market, noting a clear inverse correlation.
Romaine Bostick
Liz Ann Sonders
The inverse correlation between oil and equities has been unbelievably persistent since the war began and is likely to persist until we have something more definitive, specifically an opening of the Strait.
Asks if she's surprised the market downturn hasn't been more extreme given the news cycle.
Romaine Bostick
Liz Ann Sonders
There's more carnage under the surface. The average S&P member has had a 17% max drawdown YTD, and the average NASDAQ member has had over 30%. Corrections are happening via rotation and churn, not a broad selloff.
Asks about implications of rising ETF share of volume, often seen during volatility.
Katie Greifeld
Liz Ann Sonders
ETF share of volume jumped to ~38% in March. Persistence could mean a continuation of rising correlations and declining dispersion, changing the market backdrop from earlier in the year.
Asks when earnings estimates might reflect the war impact.
Romaine Bostick
Liz Ann Sonders
We haven't seen much movement yet, aside from energy (up) and tech (up on AI). Analysts may feel pressure to adjust estimates closer to the reporting season in early April.