• Misplaced malaise for bank stocks? Historically, bank stocks are economically sensitive. As covid cases have doubled in over the past two weeks, we have seen money flowing out of bank equities and into treasury bond funds. However, banks may be safer than expected. The percentage of loans-to-deposits at the 100 largest banks is 75% (compared to the 20 year median of 90%). Additionally, cash and its equivalents account for 10% of all bank assets (compared to the 20-year median of 4%). 
• Nasdaq roars on D&I. On Friday, the SEC agreed to the Nasdaq’s new diversity rules, which will require any Nasdaq-listed company to achieve minimum gender and ethnic diversity targets on their board or be forced to explain in writing why they are not doing so. These type of rule changes in addition to recent actions taken by other large institutions like BlackRock and Goldman Sachs may be a reason why 75% of all new independent directors at S&P500 companies have been women or racial or ethnic minorities.
• WFH + more $. According to a recent survey 83% of high earning employees ($100K+) want flexibility for where they will work. Additionally, 48% are actively looking for a new job and 47% would give up a pay increase for greater flexibility.
• You bought what? US consumers increased their debt load by over $37billion in June. This marks the fastest rate increase ever recorded. This rapid increase in credit card debt, however, also explains how consumer spending has been able to stay strong despite no new government stimulus checks being issued.  Consumer spending, which accounts for two-thirds of US economic activity grew by double digits over the past two quarters.