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Markets According to Brian: 2H 2021 — Navigating a Challenging Backdrop

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Date: Wednesday May 26, 2021

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The S&P continues to hold up well despite the ongoing concerns of the bears and the multitude of economic and macro worries that they keep pointing to as support for their less than favorable forecasts for the U.S equity market.  Although the topic of surging inflation has been in the headlines quite a bit, the yield on the 10-yr U.S. Treasury bond has fallen from an intra-month high of 1.70% to 1.56%.  Not what one would expect if a sustained bout of inflation was taking hold of the domestic economy.  The extreme focus on the bigger picture macro backdrop has led traders to react to nearly every news story that hits the tape, and the result has been quite a bit of intra-market churn for positioning.  One day Growth/Technology gets hit hard and a few days later they are rallying hard again and there have also been a similar back and forth with the Cyclicals/Value/Recovery areas as well.  This type of a trading environment can be quite challenging for any investor regardless of expe...

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