Market Moment
Glen Eagle®: America’s Women-Owned Trading Desk®
02/16/2021
|
|
-
Amsterdam is the New London: As part of the fallout from Brexit, the Amsterdam Stock Exchange saw the value of shares traded per day jump from €2.6 billion to more than €9 billion in January alone. Simultaneously, the London Stock Exchange saw a corresponding drop of around €8.9 billion per day. Investors are clearly viewing the Dutch capital as the new preferred location to gain access to the European market.
-
Bubble Territory: Many investors question if we are in a bubble market comparable to 2000. The reality is that valuations as a whole are not nearly as stretched as they were during the dot-com era. For example the 50 largest stocks traded at a median forward p/e multiple of 31x in March2000. Today the 50 largest stocks have a multiple of 23.6x and are operating in an environment with much lower interest rates, which helps explain some of the higher valuations. That being said, it is hard to argue that there are not bubble-like features in areas of the market such as some of the reddit-promoted and electric vehicle stocks.
-
Piling on the Debt: So far in 2021, companies have issued a record $139 billion in non-investment grade bonds, close to 10% of which is rated triple-C or lower (one above default). The record issuance is the result of increased demand from investors despite the fact that the high yield index now has an average yield of less than 4%. This has allowed companies that were previously at risk of default to roll their existing debt out with longer maturities while also reducing their interest expense.
-
US Recovery Continues: A recent Reuters survey shows that 90% of economists polled believe that the US economy will reach pre-Covid levels within one year, with 41% believing it will be within 6 months. That being said, the wide majority of economists still believe that it will take over a year for employment to return to pre-crisis levels, with 61% believing it will take more than two years. There are still around 10 million more Americans that are unemployed compared to February 2020.
Economic Calendar
Monday: N/A
Tuesday: Empire State manufacturing index - Feb
Wednesday: Retail Sales - Jan, Producer price index - Jan, Cap utilization - Jan,
Thursday: Housing starts - Jan, Building permits, Jan, Import price index - Jan
Friday: Services PMI - Feb, Manufacturing PMI - Feb, Existing home sales - Jan
|
|
US Futures
S&P 3947.75 +0.43%
DOW 31,563 +0.53%
NASDAQ 13,860 +0.40%
World Markets
FTSE 6745.62 -0.16%
NIKKEI 30,467.75 +1.28%
Hang Seng 30,746.66
+1.90%
|
|
Treasuries
3 Mo 0.07%
10YR 1.2%
30 YR 2.01%
|
|
Currencies
Euro $1.217
Pound $1.393
Yen $105.251
Commodities
Gold 1823.5 +0.2%
WTI Crude 59.8 +0.55%
Silver 27.81
+1.76%
|
|
|
Upcoming Earnings Calls
Monday - N/A
Tuesday - CVS, AAP, PLTR, CAR, OXY, DVN, AIG
Wednesday - HLT, SHOP, SAM, TWLO, MRO, CAKE
Thursday - WMT, MAR, AMAT, PLNT, DBX, TRIP, ROKU
Friday - D
|
|
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
|
|
|
|
|
|
|
