“I can only show you the door. You’re the one that has to walk through it.”
This morning – As Q1 wends to a close the threat of global recovery and higher rates overhang markets! Meanwhile, the market has spawned a whole new class of stocks: Trend Stocks – based on what we collectively believes about the future. Non Fungible Tokens (NFTs) look set to benefit from Trend Stock status!
And what an interesting week that was… Imminent vaccine wars, the “threat” post-pandemic economic recovery triggers rate rises thus undoing unsustainable P/E stock price multiples, and regulators seeking to regulate the vim out of the big dogs of Big Tech. Money is flowing back into cyclicals and fundamental stocks – but it seems based largely on what looks cheap to today’s already grossly inflated market. If it all looks like the ingredients for a corrective burst – well who knows?
There are a couple of victims out there. I feel most sorry for AstraZeneca and Oxford University – despite all their good intentions to produce a fast vaccine at zero profit and get it out there, they are on everyone’s solids list. The Europeans are using them as the sacrificial lamb for their botched rollout, and the Americans are being all high & mighty about numbers – although the good Dr Fauci did say “It’s still a very good vaccine.” I got the AZ jab and I ain’t dead yet. Good on them!
Pity the pilot and captain of the container ship Ever Given. How embarrassing. How dangerous to the global economy?
Next week will be slow ahead of the Easter Break and quarter-end. There is a deal of account balancing underway, so we may yet see some moves. It might be an opportunity to take stock of where markets are.
What’s going to happen in Q2?
