This article is only available to Macro Hive subscribers. Sign-up to receive world-class macro analysis with a daily curated newsletter, podcast, original content from award-winning researchers, cross market strategy, equity insights, trade ideas, crypto flow frameworks, academic paper summaries, explanation and analysis of market-moving events, community investor chat room, and more.
Why Buffett Was Wrong to Dump Airlines (Advisor Perspectives, 3 min read) Historically, air travel has proved resilient to external shocks ranging from the Oil Crisis to 9/11 and SARS. The number of daily US commercial air passenger has also begun to recover slowly from its lows as the lockdown eases (we are past the bottom). Q1 of 2020 also saw record inflows into airline stocks from value investors.
Low-Interest Rates and the Outlook for Fixed Income (PIMCO, 3 min watch) PIMCO Group CIO Dan Ivascyn believes that in the short run interest rates will remain low and range-bound. He thinks there are attractive opportunities in the corporate segment (both public and private markets) where there are attractive yields and higher total returns.
The 5 Types of Investors in This Market (A Wealth of Common Sense, 4 min read) A combination of the following investors are driving the current sentiment; i) Tech, long only, ii) Non-participants in the market (due to the disconnect between the market and the economy) iii) Long only investors, iv) Tail risk strategies and stocks that are benefiting from lockdowns (Peloton, Zoom, Slack, Netflix), v) Those uncertain about portfolio allocation.