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By Syndicated Content
By Mike Dolan
LONDON (Reuters) – Global investors have flipped from ‘buy everything’ to ‘peak everything’ in a matter of weeks – but these manic mood swings may even out soon.
Stock markets appear to have run into the sand after several weeks of torrential inflows. By Bank of America’s reckoning the influx into world equity funds over the past five months exceeded that of the past 12 years combined.
Fears of ‘too much, too soon’ prompted many investment firms – including Deutsche Bank, Morgan Stanley and JPMorgan – to warn in recent weeks of a possible 5-10% correction ahead.
This week’s tech-led shakeout – the second such wobble in less than 3 months – reinforced a whole host of those anxieties – everything from ‘peak’ business sentiment, earnings and output growth to ‘peak’ central bank largesse, excess liquidity and investment flows.
Tokyo stocks extended its rebound substantially on Friday as semiconductor-related names continued to surge.
The 225-issue Nikkei average advanced 465.13 points, or 1.58%, to close at 29,854.00. On Thursday, the benchmark index gained 210.07 points.
The Topix index of all first section issues finished 13.98 points, or 0.71%, higher at 1,971.62, after rising 3.64 points the previous day.
The Tokyo market made a strong start after all three key U.S. market gauges climbed on Thursday, reacting favorably to U.S. President Joe Biden’s announcement of his infrastructure spending package.
Better-than-expected readings in the U.S. Institute of Supply Management manufacturing purchasing managers’ index for March also underscored market optimism.
We are pleased to feature another post from Peter Smith, procurement expert and author.
Is supply chain swallowing up procurement? That was the attention-grabbing headline that popped up on one of my media feeds the other day. The sub-heading expanded on that. “
The pandemic thrust supply chain management and risk mitigation into the limelight. What happens to the procurement folks?”
On looking more closely, I saw that it was published back in October last year, on the Supply Chain Dive website, and written by Rich Weissman. He is an alumnus of the US Institute of Supply Management and an experienced procurement practitioner and now academic. He asks whether pandemic-related disruptions to supply chains (think of the personal protective equipment issues, for instance) has pushed that “once relatively obscure work into the limelight.” Well, the answer is clearly “yes.”
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