12/5/2021

looks like holders taking risk off the table here. Spooked by the cost of money, higher rates vs over heated markets don't mesh. 

Cleveland Federal Reserve President Loretta Mester sparked concern on stock valuations and inflation, says 'My read is that there is certaintly in terms of equity prices there is upward valuation pressure there'  Seeing inflation move upto 2% is not a problem', Mester said..So Mester appears open to let inflation run hot. The FED perhaps to lift rates in 2022 to combat inflation. Observation is investors in tech have enjoyed low interest rates so a reset is on the way. 

The covid-19 beneficiary stocks are now non- beneficial.

Cramer's take If rates go higher no one wants anything that sell a multiple- to-sales ..need profits. So boring stocks with strong demand whilst supply, inputs remains limited.