Transitory Inflation Vs. The Looming End Of Covid

The Razor’s Edge

Inflation realities and fears struck the market last week, sending indices lower and helping drive the Nasdaq's 3rd consecutive losing week. At least that's the straightforward read, but as with so much of the market, there could be other things going on. While many are talking about the CPI report, the CDC's updated mask guidance is a reminder that a post-COVID world is coming. So is that what's moving stocks, or how are investors thinking about all this?

On this edition of The Razor's Edge, we talk about the nature of this inflation and the nature of this market, how it compares to past environments, and what sorts of changes we are or are not making in our positioning.

Topics Covered

• 3:00 minute mark - Interpreting the regime change – inflation or end of covid?
• 11:00 - The inherent rebalancing
• 19:30 - Changes in mindset or positioning
• 22:00 - What transitory inflation means, and looking back at 2000
• 31:00 - Managing relative value as a strategy in a changing investment regime environment
• 37:30 - Disney as an example of what is a good return and thoughts on pair trades
• 45:00 - Hitting the reset button coming out of the pandemic