Market Moment
Glen Eagle®: America’s Women-Owned Trading Desk®
04/12/2021
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Equities Are Running Hot: With the government continuing to pump trillions of dollars into the economy and optimism around an economic reopening increasing, investors have added over half a trillion dollars into equity funds over the past 5 months. This is more money than investors had previously added to equity funds over the past twelve years. Given the fact that this money is being added to the market at a time when the S&P500 is trading at close to a 22x forward earnings, some analysts worry that there will be a near-term correction.
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High Yield Bonds Aren’t So High Yield: The high yield premium fell below 3% last week, which is the lowest it has been in over a decade. Investors are acting as if the Federal Reserve’s accommodative behavior has eliminated any major downside risk altogether. This is one reason why the average yield for CCC rated bonds (one above default) is currently around 6.1%, which is the lowest level in history.
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Sustainable or Short-Term Growth: The US economy is expected to grow at its fastest rate since 1983 (6.4%) according to the Wall Street Journal’s survey of economists. This growth is expected in part due to the rapid pace of vaccination (roughly 1 in 3 American’s have now received at least one vaccine shot according to the CDC). Can the government’s excessive spending spree can generate long-term economic growth or is it masking underlying concerns (i.e. 1 in 10 subprime auto loan borrows are now more than 60 days delinquent)?
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Prioritizing Women: The labor force participation rate among women fell to 56.3% during the pandemic, its lowest level in over three decades. Women account for the majority of workers in the hardest hit sectors - education, leisure, and hospitality. Additionally, they take on the brunt of the child-rearing responsibilities in their families. Their participation has yet to return close to the pre-pandemic levels, indicating a continued drag on household incomes and lower consumer spending.
Economic Calendar
Monday: Federal budget
Tuesday: NFIB Small business index (Mar), Consumer price index (Mar), Core CPI (Mar)
Wednesday: Import price index (Mar), Beige book
Thursday: Retail sales (Mar), Phila Fed manufacturing index (Apr), Empire State manufacturing index (Apr), Industrial production (Mar), Cap utilization (Mar), Business inventories (Feb), NAHB index (Apr)
Friday: Building permits (Mar), Housing starts (Mar), Consumer sentiment index- prelim (Apr)
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US Futures
S&P 4111.25 -0.20%
DOW 33,595 -0.26%
NASDAQ 13,806 -0.17%
World Markets
FTSE 6881.23 -0.55%
NIKKEI 29,538.73 -0.77%
Hang Seng 28,453.28
-0.86%
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Treasuries
3 Mo 0.02%
10YR 1.67%
30 YR 2.34%
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Currencies
Euro $1.1896
Pound $1.3749
Yen $109.37
Commodities
Gold 1738.9 -0.34%
WTI Crude 59.53 +0.35%
Silver 25.17
-0.59%
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Upcoming Earnings Calls
Monday - N/A
Tuesday - FAST
Wednesday - JPM, GS, WFC, BBBY
Thursday - BAC, SCHW, TFC, PGR, USB, UNH, PEP, DAL, BLK, RAD, C, AA
Friday - MS, BK, PNC, KSU, CFG, STT, ALLY
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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
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