Market Insight May 16, 2021

Weekly Commentary & Strategy

Last week, global stocks posted their worst week since February as inflation fear sent shivers through market. The CPI number indicated fast rising inflation with a “wow” effect. Prices rose in areas which have been mostly impacted by the pandemic and now are facing the gradual reopening. On a closer look at the CPI components, the majority can be explained by the high demand and low supply, this time. For example, used car prices surged by 10% in April compared to the prior month, accounting for a third of the rise in the CPI, due to customers’ reluctance to use public transport while preferring to spend their pandemic paychecks on cars….