Lehman 2.0: China Financial Crisis? 😬

🇨🇳 China financial crisis. Chinese property giant Evergrande remains on brink of bankrupcy. TLDR timeline: Markets 📉 Mon → 📈 Tues on payment assurances → 📈 rest of week despite indications obligations not met on Thu. Dubbed Lehman 2.0, we’re monitoring closely as China looks to stabilize situation. 🏦  Fed turning hawkish. Fed signaled purchase tapering soon though vague on timing. Accelerating rate Read More

Inflation Peaking? 😅

💸  Peaking inflation? #InflationFears moderating as August 12-month CPI rose only +0.3% M/M (still up 5.3% Y/Y). 2nd month of deceleration, but we’re still monitoring 2 main questions: (1) Does inflation recede? and (2) Could this be just a temporary reprieve due to #COVID19 delta? 🇨🇳  China concerns. #ChinaTension weighing on markets again as its #COVIDRecovery stalling from new delta outbreaks and more Read More

Cracks in App Store Ecosystem 📱

😷 Stalling recovery? #COVID19 delta surge moderating, but worries over #COVIDRecovery momentum rising. Spending data shows slowing growth and company #Back2Work plans continue to get pushed back. 😬  Risk appetite contracting. Market pullback not surprising given huge August gains and post another #Crypto rise and fall. Overall, broad sector weakness as S&P 500 fell almost -2% last week. 📱  App Ecosystem breach. District Court ruled Read More

Travel Hits Road Bump 🚧

🙅‍♀️ EU restricts US travel. Week started with Europe restricting US travelers due to rising #COVID19 delta cases. Travel and other #COVIDRecovery names lower with another roadblock. Over weekend, Sweden went further and imposed US travel ban. 🌳 Growth rotation. #COVIDRecovery weakness saw rotation into Growth names. In particular, Tech 💻 and Communications 📡 were strong. Overall Growth outperformed Value by almost +2%. Read More

Market has High, High Hopes 🎵

😅 Decelerating COVID. Domestic #COVID19 delta surge seems to be flattening. Investor optimism rising as fears of further restrictions or lockdowns hampering #COVIDRecovery ease. Hopes bolstered with FDA approving Pfizer vaccine as well. 💸 Powell backs EOY tapering. Fed 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

📉 Markets sink on Fed tapering. Markets 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 #COVID19, but Fed minutes tipped the scales. 🌊. 4th wave rising. #COVID19 cases and hospitalizations approaching 3rd wave levels. (Deaths still lower, but also lagging indicator.) #COVIDRecovery trajectory Read More

China Shocks Market 🇨🇳

🇨🇳  China crackdown. #ChinaTension rising 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. 📱 Weak Big Tech earnings. #BigTech and growth names largely lower following weaker #earnings last week. Growth down over -1% while overall S&P 500 only slightly lower. Read More

4-Day Streak Caps Green Week 🍀

⛈  Stormy Monday. Perfect storm Monday with #CyberSecurity hack, rising #ChinaTension and ongoing #COVID19 delta surge. S&P 500 fell -2% while 10-year treasury yields plummeted -8% to start week. 🤗 Green recovery Market fear didn’t last as S&P 500 rallied +4% to finish week up +2%. Market sentiment got a boost from strong #earnings alleviating stalling #COVIDRecovery concerns. 🌳 Strong growth rotation. Growth won Read More

Market sentiment turns bearish 🐻

😷 Domestic COVID is back. After months of steadily declines, 🇺🇸 #COVID19 rising across cases, hospitalizations and deaths. Not 4th wave yet, but some counties already reimposing mask mandates. While primarily in unvaccinated areas, investors still spooked by stalling #COVIDRecovery. 💸 Is inflation really transient? Fed chair Powell reiterated transient inflation expectations after June’s 12-month CPI rose to +5.4%. #InflationFears getting louder Read More

Delta driving COVID resurgence 🦠

🤷‍♂️  What market uncertainty? Investors largely shook off #InflationFears and #COVID19 resurgence sending S&P 500 for another green week. Growth rotation continues to lead market up. 🧐  Banks slide on falling yields. 10-year treasury yields slipped -10% through Thursday before rebounding +5% Friday. Bond investors likely buying up treasuries as macro uncertainty rising. Banks 🏦 dip along with rates. 🦠  Domestic cases rising Read More