Daily Note | February 28, 2024 | DHY Raises And Looks Compelling, With Risks

Markets are pulling back today ahead of the PCE report out tomorrow and the ISM figure on Friday. The S&P is only off about 0.5% from the all-time highs. Tech and small caps were underperforming. TSLA is the only megacap in the green. Yields are lower with the dollar stronger and commodities are mixed.

Markets are now in line with the Fed's rate expectations. Despite that re-pricing of rate cuts to just 3, the equity markets remain near all-time highs and have not adjusted lower as they have in previous instances of rate shifts.

I'll start with bonds today over CEFs.