A Snapshot of the Market for the Week Ended July 23, 2021:
The S&P 500 closed at 4412 on Friday, up 85 points or 2.0%. Optimistic earnings results outweighed worries over the virus outbursts, inflation flare-up and growth setbacks. It’s as if Monday’s loud wipeout never happened. The earnings season is off to a great start. Over the next two weeks 3,032 stocks are set to report earnings for Q2. Market strategists are expecting many big beats. In this respect, global equities took in another $3.3 billion in new money. The pace may have slowed down a bit but the streak is remarkably bullish. Year-to date the inflow is over $600 billion, and it’s probable that even more money is heading into the global equity market. There is still $4.49 trillion in money market funds which is sitting idle. That is a lot of dry powder to deploy. Dividend yields are higher than bond yields across the curve and earning yields are considerably above the real rates of short, mid and long term government securities.
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By Hubert Marleau
By Hubert Marleau
