Topley’s Top 10 – April 20, 2022

Author

Matt Topley
April 20, 2022

1. Trucking Index -24% Correction.

2. ARKK—Average Stock in ETF Needs 348% Rally to Get Back to Prior Highs

Bespoke Investment Group–With the average ARKK stock down 70% from its 5-year high, it’s going to take a huge rally in the “growth” space to get back to prior levels.  As shown at the bottom of the table, the average stock in the ETF now needs to rally 348% to get back to prior highs!

https://www.bespokepremium.com/interactive/posts/think-big-blog/average-ark-innovation-arkk-stock-down-70-from-5-year-high

3. U.S. Exported 17% of Domestic Gas Production in January

Dave Lutz at Jones Trading-US natural gas prices have jumped to a 13-year high as America exports a record share of its domestic output – For President Biden, that’s a success as the US helps Europe to replace Russian gas, but also his next energy headache

4. U.S. 30 Year Treasury Closes Above 3%

Hitting 7-Year Highs

5. Spreads in CCC Bonds have Widened 125 Basis Points this Year….50 bps. This Week.

Bloomberg-Spreads on CCC-rated debt — bonds most at risk for a default should the economy falter — have widened 125 basis points this year, compared to 57 basis points for BB rated debt and 69 basis points on average for all junk bonds, according to data compiled by Bloomberg..

Junk deals in the primary market are showing signs of trouble as well. A group of banks led by JPMorgan Chase and Co. and Citigroup Inc. last week struggled to offload over $2 billion of junk debt to help finance the buyout of Oldcastle BuildingEnvelope Inc. The company’s unsecured bond sale — rated in the CCC tier — priced at a steep discount.

6. The EV Supply Chain is a Problem

Photo Illustration: Dianna “Mick” McDougall, Photos: Getty Images, Rivian Forums

LIT-Lithium ETF

7. The US is building more homes than it has in 16 years and it could finally be the break buyers need

Business Insider A construction worker works on a new house being built in a suburb located north of Toronto. Mark Blinch/Reuters