- On Wednesday, the market surged as Joe Biden got sworn in as the 46th President of the United States. Interestingly, it was a rotation from the reflation trade back into the "Old Guard" of the FANG stocks that led the way.
- The reality is that both a rise in the dollar, with higher yields, is likely to start attracting reserves from countries faced with economic weakness and negative-yielding debt. Such would quickly reverse the tailwinds that have supported the equity rally since March.
- With forward returns likely to be lower and more volatile than witnessed over the last decade, the need for a more conservative approach is rising.
For further details see:
Bulls Continue To Push Stocks Higher As Risk Rises