April 30, 2021
Good morning,
Gosh, for a big news week, where just about every number or comment went the Bull’s way – monster numbers out to bellwether big techs, a Fed meeting that ended so dovish that market participants are in disbelief of the Fed’s disbelief and economic numbers “beating or meeting” at every turn – the S&P looks to open this morning virtually unchanged from last Friday’s close.
Hmmm – it’s only 1wk but this week’s change in market psychology is undeniable. Could the anticipation of month end rebalancing today (net equity selling expected) play some role in this week’s not-very-good reaction to very good news? Perhaps, but at best this is another week of sideways action and if this week’s change in psychology lasts then a correction with negative numbers attached to it may lie ahead – damn, just as we enter May. (whispering now) – “Sell in May and go away”? We’ll have to wait and see.
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Recently, many of you have had heard me talk about real estate as a fixed income substitute. I’m certain you’ve found those conversations insightful because all I’ve done is channel Stuart’s own thoughts on the subject. No more channeling – attached is Stuart’s recent piece on Real Estate – it’s a very worthwhile read. Enjoy!
Robertson Stephens paid no fee to obtain recognition but has paid licensing fees to reference its appearances on the Newsweek, USA Today, and FA Magazine rankings lists. See Awards Disclosures
