January 3, 2022
Good morning,
HNY everyone, I hope you all had a wonderful holiday. Surely, the equity markets did. Officially the Santa Rally includes the first two trading days of the new year, and true to form, Futures are up +0.5% this morning ahead of a jammed pack week of economic data culminating with the monthly employment numbers on Friday.
“Get Ready for Less of the Same” is the overriding message from almost 50 financial institutions across Wall Steet and beyond. Bloomberg compiled the forecasts and presented them over the weekend. Consensus: conditions still look good, but the rip-roaring rallies powered by the reopening are history. Growth will ease. Returns will moderate. The most frequently cited term (224 times) was “inflation” and was most often paired with “higher” or “rising”. Higher rates and higher equity prices is the current Zeitgeist.
Be well,
Mike