View from 5th Avenue

The View at Two – 9th April, 2021

Quiet, Please, Quiet… It’s almost as if investors have taken on the etiquette of golf patrons at the Masters, staying very quiet so as to not upset the ‘action.’ (Sure we’ll round up the week by carrying on with the golf analogy). The die was cast a bit early on after China’s March PPI registered at hits highest level since 2018. The US followed suit, its own PPI measures exceeded expectations, giving a bit of weakness to Treasuries but while such evidence of inflationary pressures might’ve sparked an intense selloff in the face of rising yields, that hasn’t been the case today. Sure the 10-year yield has already come along way in a short period of time, the case could be made that given where equities reside, yields could and should be higher yet. That said, yields were a bit perky today and banks/financials doing better as a result ahead of earnings next week. Amazon is helping retail after the vote in Alabama went against forming a union and LEVI’s giving apparel a boost on a ‘booming’ sales forecast. Seems the athleisure being folded and put back in the closet, the time for ‘real’ clothes is back. Much has been made of complacency creeping back into the market but option buying would intimate otherwise. This is a “wall of worry” in full force…

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