Market Moment
Glen Eagle®: America’s Women-Owned Trading Desk®
04/19/2021
|
|
-
Can I Give You Some TIPS? US Funds that invest in Treasury inflation-protected securities (TIPS) have seen 25 consecutive weeks of inflows as investors worry about the rising risk of inflation. Can someone alert the retail investor that A. Currently all TIPS (except the 30-year) have negative yields B. The Federal Reserve owns 20% of the TIPS market which could impact liquidity and C. Traditional treasuries should always outperform TIPS if the CPI is equal to or lower than what the market expects…and right now the market is already pricing in a healthy near-term increase in inflation.
-
The SPAC Pull-Back: The performance of SPACs (or “Blank Check Companies”) has faltered as a result of both the SEC’s recent warning stating that some SPACs may need to restate their financial results and the recent confirmation of Gary Gensler, who is expected to be tough on regulation, as the SEC chairman. The Defiance Next Gen SPAC Derived ETF (SPAK) is down around 26% since its hit its peak in mid-February. Time will tell if this recent underperformance will impact the stock price of the 430 SPACs out there that are still seeking to acquire an attractive private company to bring public.
-
Covid Inequalities: As of this weekend over 3 million individuals have now died globally from the various strains of Covid-19. The pace of infection and deaths is increasing as well. Case in point, it took 8.5 months for the world to record 1 million deaths, 3.5 months to realize another 1 million and 3 months for the most recent million. While 5 countries (Russia, UK, Mexico, Brazil, and the U.S.) account for 49.4% of the most recent 1 million deaths it appears that the US and Europe are controlling the spread more effectively than countries like Brazil. This could have meaningful impact on emerging market investments over the next year.
-
Tech Triumphs: Technology has once again regained its position as the leading sector by rising 8% so far in April (versus 5% for the S&P500). The move comes as a result of 1) investors becoming more cautious as new covid strains pose a threat to the global recovery and JNJ’s vaccine rollout is slowed down 2) the 10-year treasury yield dropping around 0.15% in April and 3) quarterly earnings coming in over the next few weeks. The debate now is whether or not this is just a temporary development and value-oriented stocks will return to outperform again in the near future.
Economic Calendar
Monday: N/A
Tuesday: N/A
Wednesday: N/A
Thursday: Existing Home sales (Mar), Leading economic indicators (Mar)
Friday: Markit manufacturing PMI (Apr), Markit services PMI (Apr),
New home sales (Mar)
|
|
US Futures
S&P 4171.25 -0.12%
DOW 34,012 -0.20%
NASDAQ 14,029.25 -0.00%
World Markets
FTSE 6881.23 +0.18%
NIKKEI 29,685.37 -0.01%
Hang Seng 29,106.15
+0.47%
|
|
Treasuries
3 Mo 0.02%
10YR 1.59%
30 YR 2.26%
|
|
Currencies
Euro $1.2025
Pound $1.3815
Yen $108.043
Commodities
Gold 1788.4 +0.40%
WTI Crude 63.05 -0.13%
Silver 26.16
+0.19%
|
|
|
Upcoming Earnings Calls
Monday - KO, IBM, UAL
Tuesday - JNJ, HOG, ABT, PG, LMT, PM, NFLX
Wednesday - ANTM, NDAQ, HAL,VZ, WHR, CMG, SAVE, LVS
Thursday - DOW, DHR, ALK, BX, T, DGX, AAL, VLO,
BIIB, LUV, UNP, SAM, SNAP, INTC
Friday - SLB, AXP, HON, KMB
|
|
Consider working with Glen Eagle as one of your preferred partner trading desks
Client Focused Trading for large institutions, pensions, hedge funds, wealthy families, and private equity for over 30 years
Ansie Monaghan
Carol Ann Fernandez
Glen Eagle
4422C Route 27
PO Box 399
Kingston, NJ 08528
(609) 631-8231
|
|
|
|
|
|
|
