Last week was all about payrolls. Better than expected U.S. payrolls met with relatively risk-on appetite, resulting in cyclicals moving higher while technology was dragging down the index. The market reaction
can be explained by seeing technology as safe and ignoring the Federal Reserve, irrespective of inflation. Looking at last week’s market data and market reaction, we just recalled not only 1994 but also 2010. As
you may remember, in both years, we dealt with falling unemployment, higher inflation, a low-interest rate environment, and more or less toppish stock market. We are going to add 2021 in our history book
and briefly revise what happened in both periods…:
