). The company produces a type of rubber that is used to help store COVID-19 vaccines and therapeutics. Think of the rubber stopper at the end of a vial of a vaccine. That s not just any rubber. That s a very sophisticated technologically-enabled, sanitized stopper that only a few companies in the world can produce at scale around the world, and West is the leader in providing that, he said.
If vaccines are needed beyond this year on a regular basis, Powell said it represents a big opportunity for these three firms, as well as for investors, who aren t pricing in such an outcome yet.
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Sitting just around all-time highs, stocks are in an uncertain spot.
Michael Cuggino says the best opportunities are in longer-term relative values.
He says we ve begun a new commodity bull cycle that will last several years.
A year on from one of the worst crashes in history, equity markets are at an uncertain point.
Valuations are historically high thanks in part to low interest rates, and although much of the economic recovery still lies ahead, forward earnings expectations are priced into much of the market already. All three major US stock indexes sit near their all-time high marks.
The bank s US regime indicator has shifted to mid-cycle, a phase where inflation is typically strongest. Bank of America graph of average annualized CPI and PPI changes Bank of America
Bank of America s most recent fund manager survey on March 16 highlights inflation is the top tail-risk for investors and has replaced COVID-19 for that number-one spot in the survey for the first time since February last year. Bank of America fund manager survey graph Bank of America
This warning echoes similar sentiments from Morgan Stanley last week, whose inflation surprise index had turned positive for the first time in two years.
Your weekly outlook
The past week in the stock market saw a few more flashes of the long-awaited rotation out of mega-cap tech stocks, and into beaten-down value names. On Monday the tech-heavy Nasdaq 100 bottomed out more than 10% below recent highs before saving some face later in the week. Many popular meme stocks were collateral damage.
But the Nasdaq may have an ace in the hole in the form of the $1,400 stimulus checks due to hit Americans bank accounts as soon as this weekend. A recent survey from Deutsche Bank found that half of all people between the ages of 25 and 34 plan to use the money to buy stocks.