Market Notebook


Global equities surged higher last week while the bond complex largely consolidated or ticked a bit lower.

It appears that equity prices are disconnected from economic fundamentals. It is true that business conditions have improved from the depths of the lockdown. Unfortunately, significant disruption continues. Market participants may feel as though life is getting back to normal, but economic conditions have a long way to go. Furthermore, social unrest combined with the unpredictable manner in which COVID-19 may spread through communities with large groups of protesters adds significant uncertainty. 

In the coming week, be on the lookout for the possibility of sharp pullbacks in equity prices. Recent rapid increases in equity prices may make those gains “fragile”.

Note, FS Score data is unavailable this week.

All the best.


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