May was a mixed month for investors. The growth stocks continued climbing and reaching all time highs while the value stocks continued suffering (as expected), although we saw a bit of a rotation from growth to value in the last few days of May.
Some secular tailwinds have helped the tech-focused growth stocks — such as SaaS, e-commerce, fintech etc. My focus remains on this area as we adjust to the new normal, looking across the chasm of this pandemic.
On the central bank front, the Fed has reduced the daily liquidity to “just” $5B a day. (Can we expect another taper tantrum?) The Fed indicated that negative rates are not a good tool, but as we have seen elsewhere, it may be out of the Fed’s control. The market always dictates what an appropriate yield is & I will be keeping a close eye on this front.Continue reading