Market phase: Overall bullish trend

US: Exposure to US Equity markets 100% / Cash 0% (unchanged)

Europe: Exposure to European Equity markets 100% / Cash 0% (unchanged)

Equity markets ended flat in yesterday's trading session, but meantime some significant rotations are in process again. Banks, Oils and Basic Resources continued to strenghten amid optimism that the worse of the health crisis is now behind us, with falling new Covid-19 cases around the world, and acceleration of the vaccination rollout in most developped countries. This also lead to a beginning of profit taking phase in some Technology and Solar energy stocks that are sensible to fast rising long term rates (10Y US rates now at 1.3%) and Biotechnologies. The "reflation trade" is therefore on acceleration mode, led by commodities and consequently by Mining companies, and spreading to financials that benefit from the steepening rate curve. It will be interesting to monitor closely the tourism sector including Hotels and Transport (mainly Cruise and Airlines), that looks closer to a bullish reversal, unlike the property sector which is weakening again. This move, if confirmed may trigger a larger rotation between Growth and Value stocks but should not be anticipated for the moment. The overall (bullish) market situation remains unchanged in both Europe and the US.