The NASDAQ led the rally post-COVID. It peaked in February 2021. The NASDAQ has been range bound 2/16-6/21/2021. The DOW took leadership (growth to value rotation) from February to May. Now the NASDAQ is breaking out and taking leadership. The week of July 5th remains a key point in time
The much anticipated June Fed meeting was finally over. The Fed spoke clearly about what we have known for sometime. The re-opening is doing well thanks to the national vaccination efforts. Inflation is running high, but the the Fed is not raising rates and not tapering. The Fed could be tapering sometime down the road, but not now.
In May, the Consumer Price Index for All Urban Consumers rose 0.6 percent (seasonally adjusted); rising 5.0 percent over the last 12 months (not seasonally adjusted). The index for all items less food and energy increased 0.7 percent in May (SA); up 3.8 percent over the year (NSA). The 5% CPI year over year increase is the sharpest increase since 2008.
Imagine at the onset of the pandemic, we didn’t have any of the digital solutions and the entire economy was shut down, what kind of living conditions would have been for all of us? It certainly would feel apocalyptic! Thank goodness to digital companies such as Amazon and Zoom. They allowed us to have a somewhat normal life during the pandemic.
