preloaderlogo please wait

Short Note: ...And the Reopening Continues

Short Note: ...And the Reopening Continues

JJ Atencio Patrick Worng June 3, 2021

Global equities continue to rally, driven by the reopening across the globe. Here's what we are seeing:

  • U.S. GDP increased at an annual rate of 6.4% in the first quarter of 2021, while the second quarter is expected to increase at a rate of roughly 11%.
  • 41.4% of the U.S. population is fully vaccinated, and 51.3% have at at least one dose. (Our World in Data)
  • Most of the U.S. population is targeted to be fully vaccinated roughly by july.
  • U.S. corporate earnings are on track to be 40$ higher than last year's eearnings, and 2021 eaernings are expected to grow another 8%.
  • Technology posted negative returns in May, which favored more cyclical names due to the reopening.
  • European equities are catching-up as U.S. markets start slowing down from its reopening rally, posting returns of about 15% year to date.
  • Japanese equities were up around 1.6% last May, and could be a market to watch as it becomes the next market to catch-up to the U.S. reopening.
  • Around 44 states started cutting back on thier stimulus checks to encourage people to go back to work. Even with 8M unemployment, the U.S. is still seeing labor shortages in certain sectors.