Best Assets of the Month, Pfizer and Yellen's Surprise

If you look at the various asset classes' profitability in April, a rather interesting picture emerges. The absolute leaders were commodity markets and real estate securities. The US stock market has only the third position. The outsiders were cash and, in particular, the dollar. It once again confirms that keeping money in the cash is a relatively unprofitable undertaking. In addition, it is extremely important to monitor what is happening in the financial markets in order to determine the class of assets that should be emphasized.

Speaking of May, we've already noted that the old adage “sell in May and leave the market” has a good chance of being confirmed this year, at least judging by the reaction of the US stock market to the exceptionally excellent reporting of US corporations.

Yesterday Jannette Yellen (the US Treasury Secretary and former Fed chief) gave the first signal that a tightening of US monetary policy was just around the corner. When speaking at the Future Economy Summit, she said: "The interest rates may happen to rise slightly to keep our economy from overheating." The fall of the Nasdaq Index by 300 points literally in 3 hours is a clear confirmation that the signal was heard.

As for the commodity markets, their further growth is questionable for us, both because of the general overbought in the market and because of the situation in India.

An increasing number of Indian states are going into lockdowns, and an increasing number of countries are trying to isolate themselves from India. Even lions in zoos in India began to get sick with coronavirus en masse, what can we say about people.

Against this background, one company continues to look extremely undervalued - Pfizer. The pharmaceutical giant released excellent quarterly financials yesterday. Profits are much higher than analysts' forecasts, and earnings are higher than expected. Vaccine sales in the first quarter generated an additional $3.54 billion in revenue and accounted for a good quarter of revenue. The company's plans for revenues have grown by 50% (!) from $15 to $25 billion. And the company plans only to increase this result. In 2022, it is planned to sell at least 3 billion doses. In general, we buy Pfizer shares - they are still very cheap.

The main event of the day will be the US employment data publication by the ADP. Yes, official data from the Ministry of Labor will be released only on Friday, but statistics from ADP will definitely interest the markets today.