FL Cases May Have Peaked. Expect a “Risk-On” August Led By Cyclicals

The sell-off seen in markets Wednesday, in our view, had a capitulatory feel to it. The ostensible trigger was a combination of the soft ADP jobs report and seeming hysteria over lambda variant of COVID-19. But despite all that hysteria and broad-based selling, I was struck by a few things (anecdotes):

– dozens of inbound inquiries about lambda variant causing a new wave (see below why we think this is a nothing burger)– US 10-year crashed to 1.126% but has since flipped higher (now 1.227%)â€...

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