Consumer Sentiment Weakens, New Highs and Consolidations, and is a Pattern Emerging in UST Yields?
May 17, 2021 | FIRESIDE CHARTS
Mounting inflation anxiety and tax concerns sparked an unexpected slump in the Consumer Sentiment Index this month, pushing it to its lowest reading since February. Will the change in attitude show up in spending habits? Retail earnings and more data on consumer spending this week are likely to shed some light. Socks rallied Friday after a week of sharp declines, though not quite enough to erase losses as markets continue to rotate near the top. Yields eased heading into the weekend after spiking on higher-than-expected inflation data, but could a potential “cup-and-handle” pattern point toward a change ahead? And how does the current commodity rally compare to past periods of global growth?
1. All the talk about increased taxation and inflation has put a damper on consumer expectations.
Source: The Daily Shot, from 5/17/21
2. Is our debt load out of control? The pandemic’s response added ~$4 trillion in debt over the last year and Washington wants to double down?
Source: The Chart Store, from 5/17/21
3. Those of us old enough to remember the ’70’s might appreciate a few views from Ron Griess on inflation:
Source: The Daily Shot, from 5/17/21
4. Many sectors, market caps and locations are seeing new highs and then consolidation as markets continue to rotate near the top…
Source: The Chart Store, from 5/17/21
5. Is a technical “cup and handle” pattern beginning to form? If so, we’ll see rates go sideways for a while and then rise substantively…
Source: The Chart Store, from 5/17/21
6. EM equity returns have been a tale of two quarters:
Source: The Daily Shot, from 5/17/21
7. A nice historical perspective to the current commodity rally:
Source: Arbor Research and Trading, from 5/17/21
Disclosure: The charts and infographics contained in this blog are typically based on data obtained from 3rd parties and are believed to be accurate. The commentary included is the opinion of the author and subject to change at any time. Any reference to specific securities or investments are for illustrative purposes only and are not intended as investment advice nor are they a recommendation to take any action. Individual securities mentioned may be held in client accounts. Past performance is no guarantee of future results.