As the economy continues to recover economists and financial media have become increasingly antsy over the prospect of central banks tapering bond purchases. We fully expect Powell and ultimately Lagarde to provide warnings at least six months ahead of implementation. Keep a closer eye than ever on central bank communications!
The current bullish breakout triggered on May 20, 2021, has endured for 238 trading days for a whopping gain of 41%. Only four other bullish breakouts since 1950 have been so strong (Oct 1953, Jan 1958, Aug 1982, and Jan 1995).
In recent weeks, inflation expectations have been quite polarized between markets and central banks. Whether this will remain the case is up in the air, however there are some indications that some central banks are getting the message.
An all-clear for vaccinated travel from the CDC will open the floodgates for the 2021 travel season. Americans are already ramping up their planning in response.