Markets went haywire last week thanks (so the story goes) to some retail traders in a Reddit forum led by a man named Roaring Kitty. It was hard to pay attention to much of anything else in capital markets, but it was also a busy week for earnings. Industrial companies said that demand was “very, very, very strong” and there was an abundance of commentary on price pressures. Jerome Powell isn’t worried though. Game on!
Succinct Summary: Vaccinations are happening around the US and the world. It’s been a little slower than hoped but that may be because of the logistical challenges of administering vaccines at long-term care facilities. We are on the cusp of mass dissemination, and there should be enough capacity to make sure that the population is vaccinated quickly. We’ve lost a year of our lives to COVID but the finish line is (hopefully) in sight. Vaccination should unleash a huge amount of pent up demand. Banks, which started to report this week, have showed that credit performance metrics have been better than anyone dreamed possible in March of 2020. They’re releasing reserves and preparing to return capital to shareholders. Tech spend is also booming.
Something New: We launched a new podcast last week where we discuss the top quotes and ideas from the earnings transcripts we read. It is now available on Apple Podcast, Google Podcast and Spotify and other podcast platforms. Subscribe and give us a review. We hope to be sending a new episode out every Tuesday.