This is the End… I think we all knew deep down that the strangeness of 2020 wasn’t going to simply fade away with the flipping of the calendar. Capitol riots, Reddit stonks, NFTs “worth” millions, beached cargo ships, oh my! Given all that’s happened these first 3 months of 2021, the action today feels like a bit of a dull sendoff to Q1. Naturally markets are shunning the Rotation trend that defined trading in the quarter, perhaps unsurprisingly given rising yields have been behind most of the recent “excitement” and much-advertised rebalancing finally seems to be kicking in some support for Treasuries (at least for today). Still that’s put some impressive green numbers on the board, with FANG / Tech taking advantage of the moment to put in a solid rebound performance (NYFANG +2.1%). On the flipside, cyclicals / Value are taking a breather (Banks / Energy in the red) despite Biden’s big $2.25tn infrastructure bill announcement coming after the close. It’s a rare example of a good narrative taking a back seat to the “already priced in” mentality, but the holiday-shortened trading schedule this week is also curbing any appetite for risk as traders will be unable to react to Friday’s NFP report.
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