The retreat of leveraged retail from Equity markets is leaving a lot of ‘concept stocks’ friendless, (no profit, no bid as Bob Marley almost said) but this looks to us more like 1987 than 2000, despite the noise and nonsense of SPACs etc.

Last Friday’s Non Farm Payrolls were seen by markets as ‘weak’ and supportive of a ‘no inflation scenario’ leading to a sell off in the US$.

If we only look at the top-down numbers for Asset Classes we risk missing the underlying stories and information that is ‘out there’. Thus while April saw something of ‘A reversal of the reversal, as we discussed in the May Market Thinking, the first week of May has seen something of a re-establishment of those November to March trends. Essentially the reflation trade remains in place.

Computers need binary inputs and thus the AI encourages us to see things in black and white. Such false ce

Market movements in April might best be described as an apparent ‘reversal of the reversal’ as many of the winners of the inflation/reflation trade that began in October appeared to sell off while the ‘losers’ rallied.