Last week, I ran into full-on hail and got sunburned all in the same day. If you live anywhere in a temperate climate zone, you probably can relate to this meteorological joie de vivre of spring.
I feel pretty much the same about the markets right now. They’re muddling through their own “temperature changes.”
2021 kicked off with a boom in “reopening” stocks. The market was so obsessed with recovery I didn’t hear a single Wall Street analyst root for tech. But in March, the tide turned. Covid-driven stocks picked themselves back up and “reopening” stocks stalled out.
So today we’ll sift through the first earnings reports to get a little insight into where the market stands. I’ll also touch on investors’ weird response to earnings—which hints at the expectations baked into today’s record valuations.
Let’s dig in.