"Price mo, driven by EPS mo, is the best mo"

1. Financial conditions. "At the point of peak stress, changes in asset prices implied FCI tightening was likely to detract roughly 75bp from 2026 US GDP growth vs pre-conflict...that impact has now largely evaporated."

2. Redbook Index. Same-store retail sales rose by 7.7% YoY in the week ending Apr 25 (6.7% prev), the strongest reading since Dec'22.

3. Central banks vs. gold. "It is EM central banks that have been steadily purchasing gold since the 2008 GFC, adding over 225mn troy oz over the past 17 years. Importantly, this is more than advanced economy central banks sold in the 1990s ... EM central banks still only hold half the amount of physical gold of developed markets."

4. Risky vs. safe flows. Over the past 4 weeks, flows into risky asset funds have overwhelmed those into safe asset funds.

5. Tech price vs. EPS. "As investors consider the Tech sector, it's not a question of overweighting the group or not, but rather which Tech stocks to own. Stocks where earnings are doing the heavy lifting have performed far better over time, with less volatility and smaller drawdowns. Price mo, driven by EPS mo, is the best mo".

ICYMI