Two Steps Forward… That’s largely been the direction the market has taken but a few of the bulwarks of this move higher have been dented this week. As such, equities are in retreat once again today, with both the reflation/value-cyclical names and growth/WFH names taking hits in equal measure. Instead it’s 4 defensive sectors that have thus far traded in the red year to date that are leading today; good for them. Banks and energy are in retreat; not coincidentally those two are the biggest gainers of the week but word of another mutant strain, this time out of Finland, and it provided cover for anyone looking to trim. The biggest loser of the day however is the food retail space, Wal-Mart being a drag after a bottom-line miss and guidance on a sizable spending program. Once again the market has revealed its resilience though, buying the dip/blip as the day progressed and shows investors remain at the ready. And while money does continue flowing into VIX ETFs to serve as a hedge, the recent BAML survey reveals PMs are taking higher than normal risk at an all-time high clip.
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