The shallow and fleeting spike in U.S. and German yields yesterday shows that these haven bond markets are more concerned about near-term pandemic challenges than the putative economic boost from a potential vaccine.
"The digital version of gold but with more-limited supply and a history of adding zeros, appears to be in an early price-discovery stage and may simply continue its ascent in 2021..."
"The euphoria created by the presidential election result and the vaccine announcement will give way to a more sober analysis of how long and smooth the road to recovery will be."
If you don’t believe US corporate earnings can show dramatic operating leverage in 2021 then now is the time to consider lightening up on risk exposure.
WMT US comps nearly doubled estimates, jumping by 6.4%, even as the number of transactions tumbled 14.2% Y/Y, offset by a 24% surge in average ticket which means shoppers are consistently buying more every time they place an order.
