The word of the day is “Surreality.”
COVID-friendly baseball started up this week, in eerily-empty stadiums. That wasn’t fake news you heard, that was fake noise, pumped in to ballparks for added “realism.” (I’m just getting warmed-up). Piling on, actual cardboard fans ate actual paper hotdogs, as players knelt during the national anthem. The (early) pennant races began with (earnest) penance for racism.
Markets stalled, but generally held ground this week, as newsflows digested the hesitating COVID recoveries, but still generally looked on the bright side of life. All-in-all, we’re not really sure what inning we’re in, but another baseball cliché is warranted. “It ain’t over ‘till…”
In our weekly insight piece:
The high price of low rates
Several factors pushed the average yield on U.S. investment-grade bonds below 2% for the first time, while premiums for those bonds have risen to previously unseen heights. So… this week we preferred preferreds.
U.S. corporate earnings: Not too Shabby
With more than one-quarter of S&P 500 companies reporting, quarterly earnings keep beating (the very low) expectations. Of course, we’re still heading for a major y/y decline, (which tends to happen when you shut down for four months), but this is actually excellent news.
Full report here: Global Insight Weekly.
I got a hall pass and got to come in to the office today, which was sort of nice. No cardboard staff here. Thought about taking my canoe here.
ps. They’re here: Blueberries
Took that scrumptious photo on my ride yesterday morning. IUt’s gonna be a fantastic blueberry season.
Enjoy your weekend.
Mark