Inflection is upon us. So, now the question is, will there be enough money to buy the industrials and banks without disrupting the tech rally?
I think it's hard to figure out how we don't see a definitively positive wake after that employment number. That's the one government number that matters, and it has put the lie to the bear case about depression.
But has it put the lie to the bear case for valuation? When the market was getting crushed, we heard many people talk about how stocks are expensive.
The issue, of course, is that they are not expensive if the vaccines fail. And they are too expensive if the vaccines succeed.
I know if I were working tonight I would say the Tesla (TSLA) bears lost again, and the 5G bulls won again after Broadcom's (AVGO) beautiful quarter.
This move in the bonds is pretty electric. We have not been sucked into a single one of the fin rallies.
But Friday we bit.
Too big a move in the futures not to.
What money did we use to buy them? The last of the tech sales. We have now trimmed every one.
We are no longer pigs.
Now we can be opportunists again.
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