Stock Market Trends and the Iconic American Burger
Memorial Day, the unofficial start of summer, has finally arrived. It’s a time to celebrate American patriotism and honor those who have sacrificed to safeguard the freedoms we enjoy every day. In recognition of the upcoming holiday this weekend, we’re paying homage to two important things in America, starting with financial markets.
With the markets reaching new highs this month, it’s been quite a ride. Soon, they’ll undergo a seasonal shift. Historically, the start of warmer weather marks the beginning of the “low to flat” performance season running from May through September. However, this year may be different, as the market has been buoyant due to soaring demand for AI, surpassing all expectations.
Investors continue to pile into Nvidia and related mega caps, with inflows into bullish AI-themed ETFs hitting record levels this week. Across indexes though, a sea of red can be seen from the FTSE to the DJIA, painting a mixed picture of the larger economy. Consumer sentiment is blue, inflation woes persist, and uncertainty around interest rate cuts are adding to uncertainty over the future.
Despite these concerns, US stocks notched fresh 2024 highs last week, while the 10-year Treasury yield fell to around 4.40%. Valuations though, are shifting, especially in the long-term, as macro dynamics remain in flux.
As we ponder these trends over the long weekend and anticipate what summer has in store for the markets (other than fireworks), we’ll be savoring a burger. Burgers reign supreme in America and for good reason. They’re incredibly versatile, offering endless customization options from toppings to cheese to sauce. They can be prepared in multiple ways—smashed, grilled, or smoked—making them a fail-proof choice for your gathering with friends and family.
A quintessential part of American culinary culture, burgers became popular in the early 20th century. In fact, not far from our US headquarters in Stamford, Connecticut, lies a burger joint that claims to be the first in the country: Louis' Lunch in New Haven.
Lore has it that Danish immigrant Louis Lassen invented the hamburger by accident one day when a gentlemen rushed in and asked him to make something he could eat on the run. Louis placed his unique blend of ground steak trimmings between two slices of white toast and sent the gentleman on his way. Over a century and four generations later, the proprietors still serve the same burger, cooked in the same way, in the very same building since 1895.
Now owned by Louis' great-grandson Jeff, the Louis’ Lunch experience is about the taste and simplicity of a fresh burger grilled to perfection. Cheese, tomato, and onion are the only garnishes offered. To some, this astounding faithfulness to tradition might be a bit jarring. But don’t say you weren't warned: a sign right above the chalkboard menu reads: "This is not Burger King. You don't get it your way. You take it my way, or you don't get the damn thing."
This may be off-putting to first-time visitors, but it’s a reflection of the American ethos, for better or worse.
Happy Memorial Day!
