• April 2021 saw an about-face in investor sentiment, with a generally optimistic tone seemingly replaced with investor angst about increasing Covid-19 case counts, vaccine complications, and vaccine distribution challenges. Lockdown measures and mitigation responses in Europe added to investor concerns.
  • US market concerns including the potential for rising interest rates and rising inflation. Tax hike worries, both on the corporate side and the individual front, also began to increase, all at a time when the improving economic backdrop, and reopening prospects in the United States, are beginning to accelerate, with herd immunity approaching sooner than most expected.
  • A closer look at market data suggests that bullish indicators remain in place. Additionally, plans for new infrastructure spending and tax increases may not have as significant an impact on growth conditions, as the effects of both would likely take some time to work their way through the real economy.
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