Unprecedented Equity Sales, Commodities Come Under Pressure, and Delta Reverses PMI Growth in Japan
August 23, 2021 | FIRESIDE CHARTS
Markets opened strong this morning after last week’s mini taper tantrum following the release of the Fed minutes. It’s good news for retail investors after a year of—pardon the buzzword—unprecedented activity, but also a good reminder to note how long it’s been without a significant drawdown in the S&P 500® Index… Meanwhile, as refinancing activity takes off in the high yield bond market in the era of low interest rates, many commodities are coming under pressure from a strong U.S. dollar and shifting reflation expectations. The continued—and strengthening—threat from the Delta variant and surging Covid cases are weighing on global economies, and all eyes will be on the Fed’s Jackson Hole Summit this week for any hints about their response. Could these few weeks have been enough to change the tune on tapering?
1. It looks like the new stay-at-home investor crowd has been busy with unprecedented activity:
Source: Bloomberg, from 8/23/21
2. A seasonal reminder:
Source: The Chart Store, from 8/23/21
3. Junk bonds are taking advantage of the low rates; ~25% of the issuance is from first time borrowers:
Source: S&P Global Market Intelligence, from 8/23/21
4. Recent USD strength has been a headwind for many commodities:
Source: The Chart Store, from 8/23/21
5. Why we keep harping on the Delta variant:
Source: The Daily Shot, from 8/23/21
6. Relatively spared from previous waves, Japan is now under full attack:
Source: JHU CSSE, from 8/23/21
7. The Delta outbreak in Japan has caused a PMI reversal:
Source: IHS Markit, from 8/23/21
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.