November 22, 2021
Good morning,
Thanksgiving week looks to be kicking off in a relatively good mood for global equity markets. U.S. Futures are up about +.30% ahead of the cash market open. My concern for the market around the fourth wave of Covid cases throughout Europe, mentioned in Friday’s note, was broadly addressed over the weekend by most of the major investment houses – Morgan Stanly, JP Morgan, Goldman Sachs, UBS. Their headline: “Virus Fears Won’t Halt Rally” (Bloomberg). The message: Investors should look through the latest spike in Covid-19 infections and the threat of lockdowns across Europe. Based on overnight price action, investors seem to be listening. As a contrarian, I gain no comfort from this and remember that when everyone is thinking alike, no one is thinking at all. Anyway, I’ll stick to the market data which softened last week only a bit, while the indexes were little change – so, we stay the course.
Hitting the tape as I type – Biden nominates Powel Fed Chair, Brainard as Vice Chair – market should like this a little for the removal of a little uncertainty.
No Notes from me the rest of the week – I hope you all have a wonderful holiday weekend ahead. Happy Thanksgiving everyone!
Be well,
Mike