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The video games retailer GameStop just raised $551 million through an equity offering, with the goal in mind to accelerate its shift to e-commerce. As a results, shares of the company jumped 15% on Monday. Around 3.5 million shares were sold at the market opening. 

China keeps demanding more food and supply remains tight, which means that agricultural firms like Archer Daniels Midland and Bunge are thriving. Shares of the two companies are up 18% and 30% year-to-date, respectively. China's crop imports are likely to remain strong until the end of the year, according to Cargill. 

Indian equities are seeing some of the largest foreign outflows on concerns of covid-19 resurgences in certain parts of the country. With gains of just about 2%, the benchmark S&P BSE Sensex is among the worst performers in Asia this year.

After JP Morgan, Morgan Stanley and Deutsche Bank turning bearish, it is now the turn of Goldman Sachs (the most bullish bank) to capitulate on the bearish side. Here's an extract of Chief strategist David Kostin note: "This week, attention shifted again. First, we received many inquiries about sector and style rotations and peaking economic growth. Second, questions abounded about the impact the potential capital gains tax rate hike could have on stock prices. Our answers: Domestic growth is peaking and forward equity returns are likely to be modest with a 3% gain in the S&P 500 to our year-end 2021 target of 4300. And historical experience suggests equity selling later this year ahead of a possible capital gains tax hike will be short-lived and reversed in subsequent quarters". Goldman Sachs economists expect US GDP growth will peak in 2Q 2021 at an annualized rate of 10.5% - see chart below. As Kostin highlighted, equities often struggle when a strong rate of economic growth first begins to slow. Kostin explicitly reminded readers that the bank's mid-year 2021 target remains 4100. Translation: stocks are set to drop from here over the coming 2-3 months... (source: www.zerohedge.com, Goldman Sachs). 

The chart below from Goldman shows that non-capital intensive businesses have outperformed capital-intensive companies on an unprecedented scale during the last 30 years or so. This could also be seen with the outperformance of growth vs. value stocks. With the massive Biden infrastructure plan and the green revolution, are we going to see some catch-up? Would such a trend benefit value/cyclicals stocks? Or will we see another false start, with "capital light" businesses soon reasserting their long-term / secular outperformance trend? Source: Goldman Sachs