Monday, July 26

reopening trade

CPI inflation, Federal Reserve, inflation, inflation and stocks, Instagram, Markets, MI Exclusive, reopening trade, services sector, UBS, us inflation, Weekend BI UK

The Instagram effect is pushing up the prices of’grammable activities like meals out and vacations-creating opportunities for investors

Consumers are rushing out to spend as economies reopen. Roy Rochlin/Getty Images Locked down during the pandemic, Americans and consumers around the world spent big on things like gadgets and gym equipment to make their time at home more bearable.But as economies reopen, people are splurging their cash on vacations, new clothes, and meals out.Paul Donovan, chief economist at UBS Wealth Management, calls it the Instagram effect.He says people want to show off again after months of lockdown, leading them to splurge on things they can post on the'gram. Donovan says the shift in spending patterns is pushing up inflation in some areas but helping bring it down in red-hot sectors like lumber. He expects the change to continue and argues it will be a good thing for markets and in...
JPMorgan, JPMorgan Asset Management, Markets, MI Exclusive, Reflation Trade, reopening, reopening trade, Rotation to value, Stock Market Outlook, US stocks, value stocks

The rotation into value stocks will get a new lease of life as the US economy booms, JPMorgan strategist says

The US economy is booming as Americans spend built-up savings. Noam Galai/Getty Images The rotation into value stocks should pick up pace again as the US economy roars, a JPMorgan strategist said. Hugh Gimber said Americans with built-up savings should benefit banks and consumer-focused companies. The so-called reflation trade has paused in recent days after the Fed appeared to shift its stance. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. The rotation into so-called value stocks in the US has further to run as rapid economic growth pushes up bond yields, a JPMorgan strategist has said, despite signs that the trade has cooled in recent days.Hugh Gimber, JPMorgan Asset Management's global market strategist, told Insider that companies in the financial ...