Max Pacella
Investment Analyst
Wholesale Investments
14 May, 2021

Welcome back to Weekend Reading.

“Volatility” has been the word of the week, with markets indiscriminately crashing like a learner driver borrowing their dad’s Porsche.

This has been hand-in-hand with ongoing Fedspeak around inflation, with the market seemingly unconvinced by the idea that 4.0% CPI (YoY) in the U.S is a simple transitory phase.  

Whilst all this presents compelling buying opportunities for quality companies caught up in the sell-off, this may not be the end of the volatility – notice that some of the former highly-valued market favourites (looking at you Afterpay) have sold off savagely, including the likes of Virgin Galactic, certain SPACs and ARKK.

Go look at charts from 1999-2000 and see if you can spot the trend.

Let’s look back on the week.

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