The View from 5th Avenue

The View at Two – 1 April 2021

No Fooling Around - If I told you last April 1st that a year from now the market would not only have recouped all of its losses but would be UP 18% from its previous all-time highs, you would’ve thought it was the dumbest April Fool’s joke ever. Not to mention not all that funny. But here we are. And equities aren’t joking around to kick off Q2 either, semis leading the charge for a second straight day giving growth a solid head start on value. Micron’s solid earnings along with a report in the WSJ about memory consolidation as well as Taiwan Semi announcing an eye-popping $100bn capital spend all helping the space. Most of the big tech names are joining the party but Apple’s inability to join the fray may suggest stock-picking might be a bit more discerning going forward. Value may be lagging but its not necessarily for sale (nothing is really) – energy leads that portion of the market, going better after OPEC+ agreed to making production increases at a more gradual pace. It had its best quarter vs growth in 20 years – it’ll be a big ask for that to continue.

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