Market has High, High Hopes ­čÄÁ

­čśů Decelerating COVID.┬áDomestic┬á#COVID19┬ádelta surge seems to be flattening. Investor optimism rising as fears of further restrictions or lockdowns hampering┬á#COVIDRecovery┬áease. Hopes bolstered with FDA approving Pfizer vaccine as well. ­čĺŞ Powell backs EOY tapering.┬áFed Chair Powell supports tapering Fed purchases this year. Given all-time market highs, investors expected Fed support pullback, but were encouraged as Powell Read More

Cyclical Pullback on Uncertainty

­čôë Markets sink on Fed tapering.┬áMarkets dropped in power hour Wed as Fed commentary indicated purchase tapering by end of year. Investors mostly shook off macro uncertainty in Afghanistan and ever increasing┬á#COVID19, but Fed minutes tipped the scales. ­čîŐ. 4th wave rising.┬á#COVID19┬ácases and hospitalizations approaching 3rd wave levels. (Deaths still lower, but also lagging indicator.)┬á#COVIDRecovery┬átrajectory Read More

Schrodinger’s Inflation? ­čśŞ

­čĺ¬ More strong economic data.┬áDespite rising case,┬á#COVIDRecovery┬ástill strong as 12-month consumer price index grew 5.4% again in July.┬á#InflationFears┬átug ‘o war with another high inflation month, but, at the same time, not accelerating. ´ŞĆ­čĺŞ┬á Yields keep rising.┬á10-year treasury yields up another +4% last week, but as much as +9% Thursday before Friday’s -5%. pullback. #RisingYields resurgence Read More

Travel Recovery? Ôťł´ŞĆ

­čĺ░Yields rebounding.┬á#RisingYields┬árebound up +4% rising as more strong economic data may accelerate Fed rate decision. Financials jumped +4% with overall S&P 500 up +1% for week. Ôťł´ŞĆ Travel strong?┬áStrong travel bookings boosting┬á#RevengeTravel. However, boost primarily driven by domestic as international, corporate and big city travel still muted. ­čçĘ­čç│ ‘Spiritual Opium’.┬áMore┬á#ChinaTension┬áas state run publication calls online Read More

China Shocks Market ­čçĘ­čç│

­čçĘ­čç│┬á China crackdown.┬á#ChinaTension┬árising as Washington relationship referred to as ‘dead end’. China cracking down particularly on Tech making investors extremely nervous. Pending M&A deal approvals likely to face higher scrutiny as well. ­čô▒ Weak Big Tech earnings.┬á#BigTech┬áand growth names largely lower following weaker┬á#earnings┬álast week. Growth down over -1% while overall S&P 500 only slightly lower. Read More