✅ 𝗚𝗔𝗦 𝗪𝗲𝗲𝗸𝗹𝘆 𝟳𝘁𝗵-𝟭𝟭𝘁𝗵 𝗝𝘂𝗻𝗲 𝟮𝟬𝟮𝟭 ✅

𝙎𝙋𝟱𝟬𝟬 𝙚𝙠𝙚𝙙 𝙤𝙪𝙩 𝙖 𝙣𝙚𝙬 𝘼𝙏𝙃 𝙛𝙞𝙣𝙖𝙡𝙡𝙮 𝙩𝙝𝙞𝙨 𝙬𝙚𝙚𝙠, 𝙖𝙛𝙩𝙚𝙧 𝙝𝙖𝙫𝙞𝙣𝙜 𝙘𝙤𝙣𝙨𝙤𝙡𝙞𝙙𝙖𝙩𝙚𝙙 𝙖𝙧𝙤𝙪𝙣𝙙 𝙩𝙝𝙚 𝙝𝙞𝙜𝙝𝙨 𝙛𝙤𝙧 𝙤𝙫𝙚𝙧 𝙖 𝙢𝙤𝙣𝙩𝙝. 𝙏𝙚𝙘𝙝 𝙨𝙩𝙤𝙘𝙠𝙨 𝙝𝙖𝙫𝙚 𝙮𝙚𝙩 𝙖 𝙩𝙞𝙣𝙮 𝙡𝙞𝙩𝙩𝙡𝙚 𝙗𝙞𝙩 𝙩𝙤 𝙜𝙤, 𝙗𝙪𝙩 𝙚𝙣𝙙𝙚𝙙 𝙁𝙧𝙞𝙙𝙖𝙮 𝙖𝙩 𝙩𝙝𝙚 𝙬𝙚𝙚𝙠𝙡𝙮 𝙝𝙞𝙜𝙝𝙨 𝙖𝙨 𝙬𝙚𝙡𝙡. 𝙊𝙞𝙡 𝙞𝙨 𝙗𝙖𝙘𝙠 𝙖𝙗𝙤𝙫𝙚 𝙐𝙎𝘿𝟳𝟬/𝙗𝙗𝙡.

What’s notable is that all this happens with the Fear&Greed Index only having trespassed 50 to the upside. It has stayed in the mid 40’s for quite a while. The wall of worry continues. We’ve seen it in the early years of the last decade. Fear is the best accelerator of bull market moves paradoxally.

𝗟𝗮𝘀𝘁 𝘄𝗲𝗲𝗸

👉 Main story on Monday was $BIIB (Biogen Inc) (one of the main holdings of our GlobalLeadersPortfolio). The stock skyrocketed 40-50% as the FDA gave a nod to its Alzheimer treatment drug Aducanumab. The first medicine to not only slow, but also seemingly heal the awful desease. It’s a great quaility stock and even thoug I trimmed some (because it weighted too much), I still keep it as one of my main holdings.
👉 CNBC: “JPMorgan’s Marko Kolanovic said in a note on Monday that the market was poised for another leg higher, likely led by value and cyclical plays. Bank of America technical strategist Stephen Suttmeier said that the S&P 500, Nasdaq and Russell 2000 all had bullish trading patterns. ”
👉 Tuesday was just about hovering around really. Meme stocks were on the newswires – so typical of late for day when nothing really happens.
👉 On Wednesday the $DJ30 shed 150 points. Industrials and financials led the modest losses
👉 On Thursday we saw inflation data for US. The CPI rose 5% yoy vs. an estimation of 4,7%. Unlike Feb-May though, the beat caused nothing but a yawn on the market. The investors shrugged it off and $SPX500 made a new ATH. The market is just much more used to higher inflation now and possibly also started realising what the Fed said that inflation is temporary.
👉 Friday ended higher. In general we’re seeing a rotation back into Growth stocks from Value. In my personal view, should the $NSDQ100 break though its ATH sometime soon, we’ll possibly see an acceleration of this trend.
👉 CNBC: “The Federal Reserve’s two-day June meeting is the big deal for markets in the week ahead. The central bank is not expected to take any action, but officials will be providing their latest economic forecasts, including on inflation and interest rates.” Watch out guys!
👉 𝙀𝙛𝙛𝙚𝙘𝙩𝙞𝙫𝙚 𝙬𝙚𝙚𝙠𝙡𝙮 𝙞𝙣𝙙𝙚𝙭 𝙘𝙝𝙖𝙣𝙜𝙚𝙨: $SPX500 +0,4%, $NSDQ100 +1,9%, EuroStoxx600 +1,1%, $GER30 +0,0%, JPN225 +0,0%.

𝗢𝘁𝗵𝗲𝗿 𝗺𝗮𝗿𝗸𝗲𝘁𝘀 𝗲𝘃𝗲𝗻𝘁𝘀: 👉 𝘽𝙤𝙣𝙙𝙨: the US yield curve narrowed (10y-FF) at 143bps, the German curve (10Y Bunds-3M) at 37 bps. EuroArea AAA-rated bonds yield at 45bps. High Yield Spreads at 3,2. 👉 𝘾𝙤𝙢𝙢𝙤𝙙𝙞𝙩𝙞𝙚𝙨 (𝙚𝙭 𝙤𝙞𝙡): $GOLD -0,8% on week. 👉 𝙊𝙞𝙡: +2% on week trading @ 70,8SD now – highest since October 2018. 👉 𝘾𝙪𝙧𝙧𝙚𝙣𝙘𝙞𝙚𝙨: DXY (Dollar Index) +0,4% on week, EURUSD -0,5%.

Best, GlobalAlphaS

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