Everything Rally Appears to Begin As Market Begins Seeing Through Headline Risks

Key Takeaways

  • S&P 500 closed at 4,471.37 up significantly from the 4,391.34 last week. The start to earnings season has been strong.
  • Retail numbers showed that Americans are ready to spend again, and this data is supportive of an element of our thesis that pent-up demand has been delayed, not destroyed.
  • The VIX amazingly settled at $16.30. It was well over $25 less than a month ago.
  • We remain medium-term bullish on equity markets and our team suggests that valuations are more reasonable than commentary would suggest.

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Well, thankfully there appears to be some policy to address the strained supply chains of the world. The Biden Administration ordered the nation’s major ports to remain open 24/7 to alleviate the extreme back-ups that are making acute supply-chain issues even worse. The administration did not offer a plan for the subsequent effect on supply chains involving beer and spirits which may be strained by the resulting celebration of longshoremen. That’s just a little joke. Despite this policy, the bottlenecks will still likely be exacerbated by the Holiday season. Step in the right direction though! Do you hear that? It is the silence of bears and naysayers as it becomes clear that the doomsday scenarios seeming less and...

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