Many yearn for a degree of pre-COVID norms. Nevertheless, as we gradually adapt to the stubborn social standards spawned by the pandemic's reaction, we cannot forget the opportunities it has created and behavioral expectations that will likely remain.
As thematic investors who assess global consumer spending trends, we have so many exciting secular trends to explore. One of the largest and most prominent consumption trends is the dramatic rise in Fintech innovation and the slow but steady death of cash as the primary method of transactions. Cash used as a percent of total global purchase transactions is estimated to be roughly 70% so it’s still very large.
As thematic investors who assess global consumer spending trends, we have so many exciting secular trends to explore. One of the largest and most prominent consumption trends is the dramatic rise in Fintech innovation and the slow but steady death of cash as the primary method of transactions. Cash used as a percent of total global purchase transactions is estimated to be roughly 70% so it’s still very large.
We are now, approximately one year from the start of the COVID-19 pandemic’s onset in the United States. In short, we remain in the midst of a stock market rotation away from “momentum” stocks fueled by COVID-related shutdowns and societal adaptations towards “value” stocks that remain historically cheap and consist of cyclical laggards.
The economic recovery and reflation tailwinds wreaked havoc on stocks and other risk assets last week. As predicted in “Fixed Income’s year Ahead 2021: Short-Term Corporate Bonds & Legacy Non-Agency RMBS” yields at the longer end of the yield curve surged (bear steepening) with the US 10-Year Treasury reaching 1.61% (highest level in almost a year).
The economic recovery and reflation tailwinds wreaked havoc on stocks and other risk assets last week. As predicted in “Fixed Income’s year Ahead 2021: Short-Term Corporate Bonds & Legacy Non-Agency RMBS” yields at the longer end of the yield curve surged (bear steepening) with the US 10-Year Treasury reaching 1.61% (highest level in almost a year).
The inflation debate rages on. Will inflation pick up amid vaccine rollouts, fiscal stimulus, accommodative monetary policy, and federal reserve quantitative easing (QE)?
The discretionary sector struggled as did all growth and quality-oriented areas of the market in 2022. That was a classic re-set and a raging opportunity to add exposure.
The Institute for Supply Management’s monthly survey of purchasing managers came in below expectations for August, while the Bureau of Labor Statistics jobs report indicated that nonfarm payrolls expanded by only 142,000 jobs during the month (against expectations of 161,000 jobs).
Catalyst Funds
Rational Funds
Strategy Shares