July 6, 2021
Good morning,
Markets are generally flat and quiet leading into the U.S. market’s open this morning. And I haven’t found much to write home about this morning either.
There still seems to be ample liquidity sloshing around monetary systems globally and schools, broadly speaking appear set to open in the fall. Combined, this should allow the economy to hit the Fed’s economic growth targets for the second half with ease. Plus, looking at bond yields, markets are all in on the Fed’s “transitory” argument. It’s a very compelling bullish setup looking through the summer.
The Tape remains mildly bullish and despite the angst provided by stretched valuations and increasingly bullish sentiment, we remain a fully invested bear here.
See you Thursday on this holiday shortened week.
Be well,
Mike