The stock market had a mixed week last week. We saw a “mini-rotation” out of growth stocks, technology, and stay-at-home stocks into back-to-normal stocks. There is a resurgence in commodities and undervalued sectors like shippers, hotels, airlines, and cruise liners.
This is happening mainly because of the decline in hospital cases while vaccine numbers rise. This on top of the $1.9 trillion Biden stimulus bill and Yellen’s trillion-dollar in the treasury bank account where the extra capital will eventually make its way back into the stock market.
Although, there is a fear of inflation. As short-term rates remain steady and long-term rates increase – a simple sign that inflation is ahead of us.
This week we have a slew of quarterly earnings with a heavy focus on retail-facing companies.
Watch the entire Monday morning roundtable to see our recommendations in trading strategies for this week.