There is something structural, I think, going on right now in terms of the jobs market and how companies are repositioning their hiring to increase margins, to reduce risk and, for workers on the other side, reducing health risk.
“I think there are three things that really matter for the equity market right now, and I’m watching sort of the reaction in terms of the futures, but they are rates, they are policy and it’s earnings, earnings being the last because we’ve had some very strong numbers that the market just didn’t really want to reward.
And as we get to the second quarter and we get to peak earnings growth, we think this is going to become more of an issue.
So, the hope over the next coming months as the economy continues to reopen, as the vaccines succeed and work their magic, that we’re going to see a big increase in labor supply and we’ll see a big increase in labor demand and those will be well matched.
The market has run pretty dramatically in the first part of the year, so, it’s not surprising to see some folks perhaps take a little bit of profit-taking here, take a little bit of a breather here.