wall street is on a fiveday losing streak the decline as measured by the sp 500 spx  of 36 is not that great but it seems depressingly inevitable once the benchmark again failed to hold above its 200day moving average the relapse of each rally in 2022 is recognition that stocks’ relationship with central banks has changed once supportive their battle against inflation has pressured equities and made markets more volatile our call of the day is from blackrock blk  who say this challenging macroeconomic scenario will continue and that investors require a new threepronged strategy to navigate it “the new macro regime is playing out we think that requires a new dynamic playbook based on views of market risk appetite and pricing of macro damage” says blackrock’s investment institute team led by jean boivin first let’s quickly deal with why unlike the more optimistic federal reserve observers blackrock reckons the us central bank will not be offering investors much assistance any time soon in essence it’s because the higher interest rates central banks are using to combat multidecade high price rises can’t resolve inflationary supply issues caused by limited production capacity as shown by the chart below “that means the only way for central banks to bring inflation down to target is to hike rates enough to crush demand orange line down to the level the economy can comfortably sustain that’s well below the precovid growth trend yellow line central banks appear set on doing ‘whatever it takes’ to fight inflation making recession foretold in our view” says blackrock equities still don’t fully reflect the damage coming so blackrock is underweight and here’s what investors should do first it’s important to continually reassess how much of the economic damage caused by central banks is priced into the market be aware that problems are building in ratesensitive sectors such as housing consumer savings are becoming depleted while ceo confidence is deteriorating and leading to lower capital spending in europe the energy shock is taking its toll the investment implication “we’re tactically underweight developed market equities they’re not pricing the recession we see ahead” says blackrock a sector like healthcare is still attractive however next investors should “rethink bonds” as investors know yields are now much more attractive than they have been in many years but it’s important to differentiate “the case for investmentgrade credit has brightened in our view we think it can hold up in a recession with companies having fortified their balance sheets by refinancing debt at lower yields agency mortgagebacked securities can also play a diversified income role shortterm government debt also looks attractive at current yields” says blackrock but be wary of longtern government paper as unlike in the past they may not shield a portfolio from recession “the negative correlation between stock and bond returns has already flipped meaning they can both go down at the same time why central banks are unlikely to come to the rescue with rapid rate cuts in recessions they engineered to bring down inflation to policy targets if anything policy rates may stay higher for longer than the market is expecting” finally investors must learn to live with inflation the politics of inflation will turn to the politics of recession and the fed will be able to stop hiking rates without inflation being on track to return to the 2 target reckons blackrock this means that inflation may be persistently above target even after recession plays out elevated by lingering supply constraints as populations age geopolitical fragmentation rages and the switch away from carbon causes difficulties sp 500 futures es00 rose 01 to 3941 as 10year treasury yields tmubmusd10y climbed 27 basis points to 3452 the dollar index dxy added 03 to 10539 and us crude futures cl1 rallied 06 to 7245 a barrel for more market updates plus actionable trade ideas for stocks options and crypto subscribe to marketdiem by investor’s business daily shares in wynn resorts wynn and las vegas sands lvs are both up about 4 on hopes casinos in macau will get a boost from china relaxing covid curbs the 2 to 10year treasury yield curve remains inverted by more than 80 basis points – the most since the early 1980’s – as the market prices in a recession and more rate rises by the federal reserve factory gate prices data will be released on friday consumer prices next week federal prosecutors are investigating ftx founder sam bankmanfried over whether he manipulated the price of two crypto currencies according to a report it’s pretty thin in terms of fresh economic data on thursday with just the weekly jobless claims report due at 830 am eastern gamestop shares gme are up 4 in premarket trading recovering much of the previous session’s decline as investors shrugged off thirdquarter results after wednesday’s closing bell that missed analysts earnings forecasts best of the web apple plans new encryption system to ward off hackers and protect icloud data tesla’s berlin hub can’t hire enough people or keep them the fallout at the top of salesforce crm  fed up with volatility from political risk trading made tortuous by ballotbox angst here’s some good news from jim reid strategist at deutsche bank “barring any snap elections 2023 will be the first year of the 21st century without a general or presidential election in any g7 country you may think that this is only a minor point to make but with these countries all in very difficult spots right now pending recessions high inflation energy woes and a cost of living crisis elections can be a lightning rod for uncertainty “ “so as we enter a potentially tough 2023 maybe political stability can be one silver lining” here were the most active stockmarket tickers on marketwatch as of 6 am eastern in india there are fiercely loyal football fans – of brazil and argentina need to know starts early and is updated until the opening 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