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Sectors: What the flows are telling us
In our minds, the single most important macro development over the past month has been the Trump administration’s attempt to de-escalate the trade war. Of course, that has been reflected in markets – with the S&P 500 rallying off of its April 7 lows. Indeed, markets have taken their cue from talks between the U.S. and other countries, which have resulted in agreements (most notably with China). Even if such arrangements are temporary, the implicit message is that the U.S. is intent on trimming the extremes of its trade policy – only a few months since it began tariffing other countries’ goods imports.