Covid cases are skyrocketing around the world. The stimulus effect on the economy is fizzling. Inflation has just popped. There’s a lot to make investors nervous right now and it’s showing up in financial markets.
In the U.S., investors are diving back into their pandemic favorites, sending the Nasdaq 100 Index to new records, and cash poured into bond and money-market funds this week.
Plenty of investors say they’re looking for refuge. Pictet Wealth Management is picking large companies over small. Janus Henderson Investors has been reducing allocations to the U.K and Europe in favor of Japan. “The momentum is with the variant rather than the vaccines," said Paul O’Connor, head of multi-asset at Janus Henderson in London. “It’s quite