The stock market drives the media narrative. Some argue that the decline in the stock market in March caused governments to take COVID-19 more seriously. Public health shouldn’t
*Last updated on 5 June 2020 Greetings investors, and welcome to the Q1 2020 list of hedge fund letters and reports! Learn from the top investors on Wall
On the one hand, the consumer had deleveraged this past economic cycle. However, many people were still hurting. The bottom 50% which don’t own stocks are mostly struggling.
We rarely mention near term stock action unless it has been extreme. This market is the polar opposite of March. The financial media went from discussing a potential
The stock market is laser focused on the economy recovering as it sees COVID-19 as an issue that is behind us. Investors are also ignoring the now international
True Rags to Riches stories are actually few and far between. We often hear of the biggies; the Jeff Bezos’ story, the Bill Gates story, the Steve Jobs’
Normally as the stock market rises, investor optimism increases. However, in this run there has been extreme skepticism because the unemployment rate is so high, there are riots
The April PCE report will go down in history as the most unusual ever because government transfer payments boosted income, while uncertainty and the inability to go out
The jobless claims report in the week of May 23rd improved from the prior week as there were 2.123 million initial claims which fell from 2.446 million. As
The graphic below is a great summary of the latest numbers on the COVID-19 crisis. It shows cases, the lockdown, economic data, and financial markets. The lockdown tracker
People have been stuck at home during these shutdowns with nothing to do. Sports were canceled which eliminated sports betting. These factors along with the dogma of buying
There have been 38.6 million new jobless claims in this recession. There was a big spike higher followed by a steep drop off which has been moderating like
As we mentioned last week, Connecticut put that they had 10 times the number of initial jobless claims that they actually had. That was a huge mistake which
April 20 brought a historic rout in the oil market with West Texas Intermediate (WTI) futures plummeting to over negative $38 a barrel. Market commentators predicted a deflationary
While the stock market has been flying high, the Fed came out with a somber Minutes release. The Minutes stated, “Participants commented that, in addition to weighing heavily
There has been a big sentiment shift away from worrying about COVID-19 towards worrying about the economy. We still don’t know if a 2nd COVID-19 wave will hit.
Sometimes change can accelerate even in the darkest times. We have seen increased use of technology to avoid the virus, yet have a sense of normalcy. The two
We’re all looking for great businesses to invest in. Those companies that seem to defy the natural order; that succeed in industries or sectors where others quite simply,
* Updated for Summer 2020 Most people probably wouldn’t consider Bill Gates a value investor. After all, Microsoft was basically the poster child for the tech boom of the
Some traders blamed Powell’s statements for the stock market’s decline on Wednesday, but that doesn’t make much sense because when Powell is negative it signals there will be
We all know the economy and the stock market are showing extreme dislocation at the moment. The Nasdaq is up year to date, while the unemployment rate is
