Max Pacella
Investment Analyst
Wholesale Investments
30 Apr, 2021

Welcome back to our weekend reading.

We are in the midst of a largely positive U.S reporting season, with over 30 of the largest companies reporting this week alone (not counting this evening’s results). More on that later.

There may be some hidden charts to support this thought, but from this perspective it seems that right now there is a significant portion of the market who are unhappy with consistent, ‘sustainable’ levels of returns.

No, rather both retail and institutional alike want “all the money” – nothing less than stratospheric returns will appease the ravenous appetite of this market, grown bloated and comfortable with the accommodating environment we’ve seen over the last twelve months.

Anecdotal evidence of conversations, market behaviour and momentum would suggest that this is not isolated to one group – retail investors who entered capital markets last year have had their expectations set by one of the most aggressive bull rallies of the last decade, whilst institutions take comfort in the rising tide of fiscal stimulus and low cost of capital.

A bit of a long intro, but I need to sound clever somewhere in this note so it may as well be up front.

Let’s look back on the week.

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