1/20/2021 9:41:12 PM GMT
The pessimists are getting squeezed to their core, the optimists are gleefully complacent. This probably won t end well.
A recent article in Barron s was a great reminder that the markets move higher or lower (mostly) without regard to who occupies the White House. It is hard to argue the reigning party plays no part in the direction of stocks but it can be argued that it merely enhances movements rather than dictates them.
For any living and breathing human with an inherent bias, this is a tough pill to swallow but the data suggests it is the case. Further, the effects of economic and monetary policy influencing the economy and stock market generally take years to materialize. Often, the policies one leader enacts during his Presidental run are merely kicking in when he leaves office and the cycle repeats itself. In short, making buy or sell decisions based on elections and parties in power is a difficult game.
Funds still in the driving seat as copper hits fresh highs: Andy Home
London Metal Exchange (LME) copper last week punched up through the $8,000-per tonne level for the first time since February 2013.
LME three-month metal touched a high of $8,238 per tonne on Friday and has retraced to a current $7,900.
The copper price has now almost doubled since its COVID-19 low of $4,371 in March last year.
The subsequent super-charged rally has been a bullish collision of positive short-term fundamentals, particularly China’s unprecedented buying spree, and funds betting on a longer-term, commodities-intensive global recovery.
However, there is a growing sense of unease that high-flying copper may be due a fall.
The market looks like it’s attempting another turnaround Tuesday with many investors anticipating a strong earnings season. Data and earnings are a bit light today, so Washington could remain in focus.
After November’s rally, markets held steady in December as investors responded favourably to positive vaccine news and a foreseeable end to the US election hysteria. However, we’re not out of the woods yet. Equity and credit valuations remain stretched, global bond markets are muted, and all the signs point to more volatility to come. We’ve responded by reducing our equity exposure and duration, shifting to foreign currency positions and equity protection strategies to insulate the fund from downside through the recovery phase.
Commodities Signal Stagflation Risk zerohedge.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from zerohedge.com Daily Mail and Mail on Sunday newspapers.