Issue 13 – The Soft-Landing Scenario

The Weekly Snapshot of the Market:

Last week data socket was a smattering of secondary economic prints that rarely move the needle. Instead, the drama of the week was dominated by war headlines, Fedspeaks, and the oil market creating fast and furious changes. Consequently, it has been hard to retrofit a narrative to the price volatility. Nonetheless, it is remarkable that the S&P 500 was up 80 points or 1.8% to finish at 4543, despite an horrendous increase in bond yields and a significant flattening of the yield curve. International capital-flow data are showing concerns among global investors about the security of investments in China, given its diplomatic friendship with much-sanctioned Russia. The Institute of International Finance (IIF), an association of the world’s biggest financial institutions, reported on Thursday a surge in outflows of money from China. There is suspicion that this money has been earmarked for the North American and European capital markets. Equity funds raked in $93 billion over Q1 in a weak market. Furthermore, buyback authorizations are on track to 2021’s record $1.2 trillion. Goldman Sachs expects gross buyback to reach $1 trillion this year, up from $870 billion in 2020.


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By Hubert Marleau

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By Hubert Marleau