Weekly Market Commentary

Weekly Market Commentary

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Weekly Financial Market Commentary

November 29, 2021

Our Mission Is To Create And Preserve Client Wealth

COVID-19 strikes again.

Coronavirus cases have been on the rise in Europe, climbing from about 700,000 new cases a week in September to 2.6 million a week in November, reported Richard Pérez-Peña and Jason Horowitz of the New York Times. As Thanksgiving approached, there was concern that travel and togetherness could increase the number of cases in the United States, too, creating stress on already taxed healthcare systems. Jamie Smyth and Caitlin Gilbert of the Financial Times explained:

“…what was expected to be a celebration has become fraught with danger in some Midwestern states, where vaccination rates are low and COVID-19 cases are rising rapidly after a summer lull…Nationally, cases have increased by nearly 30 percent since the beginning of the month…”

Financial markets took the fall surge in stride. They were less sanguine when news broke last week that a new variant of coronavirus, called “omicron,” had been identified in South Africa and was spreading.

Little is currently known about omicron. In Nature, Ewan Callaway reported the variant has a significant number of mutations, which is concerning. Scientists are tracking omicron’s spread and working to “understand the variant’s properties, such as whether it can evade immune responses triggered by vaccines and whether it causes more or less severe disease than other variants do.”

Global stock indices and oil prices dropped sharply on Friday, which was a holiday-shortened trading day, reported Chris Prentice and Carolyn Cohn of Reuters. U.S. Treasury bonds rallied as bond prices were pushed higher by investors seeking lower-risk opportunities. FactSet reported:

“[The Standard & Poor’s 500 Index] logged its worst day since late February and all major indices finished the week in negative territory. All sectors ended lower with moves highly influenced by today’s [COVID-19] variant concerns…Healthcare held up best…”

Although it was overshadowed by news of a new coronavirus variant, the pace at which the Federal Reserve will tighten monetary policy (to keep inflation in check) also was on investors’ minds last week. Reuters reported that strategists at Goldman Sachs expected the Fed to tighten faster than anticipated, suggesting that interest rates could move higher sooner.

Wear a shoe, plant a tree…In 1987, the United Nations Brundtland Commission offered a definition for sustainability: Meeting the needs of the present without compromising the ability of future generations to meet their own needs. Today, innovators are developing goods that enhance our lives and the world around us. Here are a few projects that may intrigue shoe enthusiasts:

Apple tree kicks. A Canadian fashion designer has developed biodegradable kicks that have fertilizer and apple seeds in the heels. When the shoe wears out, the owner can bury it and grow a tree. “The materials which the shoe is made from contain naturally-occurring compounds which attract microorganisms to feed on and break down the shoe over three years. Even if you don’t get around to burying them, they will still biodegrade if thrown in a landfill,” reported Andy Corbley of the Good News Network.

Garbage patch sneaks. You may have heard of the Great Pacific Garbage Patch. It’s a spinning vortex of plastic waste and other marine debris that is “…comprised of the Western Garbage Patch, located near Japan, and the Eastern Garbage Patch, located between the U.S. states of Hawaii and California,” reported National Geographic. A global sneaker company is recycling plastic ocean debris into polyester yarn that is woven into material for shoes, reported Clancy Morgan of Business Insider.

Vegan trainers. A German multinational is working with a biotech start-up to make biological leather from mycelium – the part of fungi that produces mushrooms, according to the Good News Network. The material is a substitute for real leather in athletic shoes. Other companies make vegan leather from pineapple leaves, cork, apple peels, and other materials, reported Harper’s Bazaar.

When evaluating sustainable fashion, beware of green washing – claims that a company’s products are environmentally friendly when they’re not. As with so many things, it is important to do your own research.

Weekly Focus – Think About It

“Infinite growth of material consumption in a finite world is an impossibility.”
— E.F. Schumacher, statistician and economist

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Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

 

Investment advice offered through Research Financial Strategies, a registered investment advisor.

 

Sources:
https://www.nytimes.com/2021/11/26/world/europe/coronavirus-omicron-variant.html (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/11-29-21_New%20York%20Times_New%20Variant%20of%20Concern%20Fuels%20Global%20Fear_1.pdf)
https://www.ft.com/content/cde3ef32-a754-4aae-82ca-7d8153af51b7 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/11-29-21_Financial%20Times_US%20Braces%20for%20Fifth%20Wave_2.pdf)
https://www.nature.com/articles/d41586-021-03552-w/
https://insight.factset.com/topic/earnings
https://www.reuters.com/markets/europe/global-markets-wrapup-6-2021-11-26/ (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/11-29-21_FactSet_US%20Equities%20Close%20Lower_5.pdf)
https://www.reuters.com/business/finance/fed-kick-off-faster-tapering-plan-january-goldman-sachs-2021-11-25/
https://www.un.org/en/academic-impact/sustainability
https://www.goodnewsnetwork.org/canadian-fashion-designer-makes-shoes-that-grow-into-apple-trees/
https://www.nationalgeographic.org/encyclopedia/great-pacific-garbage-patch/ (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/11-29-21_Society_Great%20Pacific%20Garbage%20Patch_9.pdf)
https://www.businessinsider.com/adidas-sneakers-plastic-bottles-ocean-waste-recycle-pollution-2019-8
https://www.goodnewsnetwork.org/mushrooms-new-adidas-plant-based-shoes-mushrooms-2021/
https://www.harpersbazaar.com/uk/fashion/fashion-news/a30640996/vegan-leather-sustainability/
https://www.investopedia.com/terms/g/greenwashing.asp
https://www.brainyquote.com/quotes/e_f_schumacher_389554

Weekly Market Commentary

Weekly Market Commentary

How Are Your Investments Doing Lately?  Receive A Free, No-Obligation 2nd Opinion On Your Investment Portfolio >

Weekly Financial Market Commentary

November 22, 2021

Our Mission Is To Create And Preserve Client Wealth

Thinking about the possibilities.

The Standard & Poor’s (S&P) 500 Index finished last week slightly higher and has gained about 6 percent during the past 25 days; however, investors have curbed their enthusiasm. The S&P 500 hasn’t experienced a move of one percent or more in 25 trading days. That’s the longest period without a move of that size in about two years, according to a source cited by Avi Salzman of Barron’s.

It’s possible investors are taking time to think about the current mix of conditions and how the economy and financial markets may be affected. For example:

  • Consumers have said they’re concerned about inflation. The University of Michigan’s Consumer Sentiment Index declined in early November on a year-to-year and a month-to-month basis. Survey participants indicated their outlook was negatively affected by inflation concerns, reported Surveys of Consumers Chief Economist Richard Curtin.
  • Retail sales were higher than expected. There was a difference between what consumers said and what they did.Despite inflation concerns, retail sales were up 1.7 percent from October to November and 16.3 percent year-over-year, reported Jeff Cox of CNBC.
  • Companies were very profitable during the third quarter. Supply chain issues and inflation were frequently mentioned by companies during earnings calls, but they didn’t affect corporate profits. The majority (82 percent) of companies reported higher than expected earnings per share. On average, company profits were up 39 percent year-over-year, which was the strongest growth since 2010, reported John Butters of FactSet.
  • The oil shortage may already be over. Oil prices dropped last week. A surge of COVID-19 cases in Europe is expected to slow demand just as supplies may increase as some countries begin to release oil from strategic petroleum reserves, reported Avi Salzman of Barron’s.During the past decade, oil prices have accounted for about 56 percent of the price of a gallon of gasoline, according to the U.S. Energy Information Administration. As oil prices fall, gasoline prices also may move lower.

The performance of major U.S. stock indices was mixed last week, according to Avi Salzman of Barron’s. The yield on 10-year U.S. Treasuries dropped last week.

We hope you have a wonderful Thanksgiving.

Infrastructure and economic growth…The bipartisan Infrastructure Investment and Jobs Act (IIJA) was signed into law last week, and the Build Back Better Act (BBBA) passed the House of Representatives and moved on to the Senate.

For decades economists have tried to determine how spending on infrastructure – roads, bridges, canals, railways, broadband and other projects – contributes to economic growth. There are diverse opinions on the subject. Here are a few:

“Increasing infrastructure investment has significant macroeconomic benefits. Near term it has a large so-called multiplier—the increase in GDP for a dollar increase in investment. It is among the highest compared with other types of federal government spending and tax policy… In a full-employment economy, the GDP multiplier on traditional infrastructure is estimated to be 1.23 one year after the investment, and 1.12 for nontraditional infrastructure. It is higher when the economy is operating below full employment.”
— Mark Zandi and Bernard Yaros, Jr., Moody’s Analytics, July 21, 2021

“Infrastructure spending by government can boost long-run economic growth by making an economy more productive, in part by improving connectivity – both physical and digital…The point here is that there can be diminishing returns from spending…I view infrastructure investment primarily as a way of boosting the economy’s speed limit. Government should focus on high-value projects.”
— James Pethokoukis, American Enterprise Institute, April 2, 2021

“A new era of large-scale infrastructure investment would necessarily be less revolutionary than the railways and roads of the past. Yet it might nonetheless prove surprisingly transformative in its direct economic impact, its knock-on effects on private industry—and in the psychological spur it provides to a country that could do with a bit of reinvigoration and renewal.”
— The Economist, May 1, 2021

“Finally, even if infrastructure investment had no impact on employment, productivity, and growth, it’d still deliver public goods that should be available to all but that may not be profitable to produce privately (such as rural broadband).”
— Marcela Escobari, Dhruv Gandhi and Sebastian Strauss, Brookings Institute, March 17, 2021

The IIJA will invest approximately $1.2 trillion, including $550 billion in new spending, on infrastructure projects across the United States. IIJA is expected to increase the deficit by about $256 billion over the next 10 years, according to the Congressional Budget Office.

Weekly Focus – Think About It

  1. Which of the following holds the largest portion of the U.S. national debt?
  2. China
  3. Social Security
  4. Military Retirement Fund
  5. Japan
  6. Medicare

Answer: B

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Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

 

Investment advice offered through Research Financial Strategies, a registered investment advisor.

 

Sources:
https://www.barrons.com/articles/stock-market-earnings-season-inflation-51637374587?refsec=the-trader (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/11-22-21_Barrons_Stocks%20Are%20Up%208%20%25%20Since%20Earnings%20Season%20Started_1.pdf)
http://www.sca.isr.umich.edu (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/11-22-21_Surveys%20of%20Consumers_2.pdf)
https://www.cnbc.com/2021/11/16/retail-sales-rise-faster-than-expected-in-october-even-as-inflation-pushes-prices-higher.html
https://insight.factset.com/earnings-insight-q3-21-by-the-numbers-infographic
https://insight.factset.com/highest-number-of-sp-500-cos.-citing-supply-chain-on-q3-earnings-calls-in-over-10-years
https://www.barrons.com/articles/oil-prices-drop-on-bearish-supply-and-demand-signals-51637336738 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/11-22-21_Barrons_Oil%20Prices%20Drop%20on%20Bearish%20Supply%20and%20Demand%20Signals_6.pdf)
https://www.eia.gov/energyexplained/gasoline/factors-affecting-gasoline-prices.php
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/pages/textview.aspx?data=yield
https://www.natlawreview.com/article/biden-signs-largest-climate-and-resiliency-infrastructure-bill-us-history
https://www.cnbc.com/2021/11/19/house-passes-build-back-better-act-what-happens-next-in-the-senate.html
https://www.moodysanalytics.com/-/media/article/2021/macroeconomic-consequences-infrastructure.pdf
https://www.aei.org/economics/the-limits-of-infrastructure-spending-to-boost-economic-growth/
https://www.economist.com/finance-and-economics/2021/04/29/what-an-infrastructure-bonanza-could-mean-for-americas-economy (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/11-22-21_The%20Economist_What%20an%20Infrastructure%20Bonanza%20Could%20Mean%20for%20Americas%20Economy_13.pdf)
https://www.brookings.edu/research/how-federal-infrastructure-investment-can-put-america-to-work/
https://www.jdsupra.com/legalnews/infrastructure-investment-and-jobs-act-2678111/
https://www.cbo.gov/publication/57406
https://www.thebalance.com/who-owns-the-u-s-national-debt-3306124

Weekly Market Commentary

Weekly Market Commentary

How Are Your Investments Doing Lately?  Receive A Free, No-Obligation 2nd Opinion On Your Investment Portfolio >

Weekly Financial Market Commentary

November 1, 2021

Our Mission Is To Create And Preserve Client Wealth

The road to recovery is slow and bumpy.

Last week, we learned that economic growth slowed in the third quarter as a new wave of COVID-19 surged across the United States, reported The Bureau of Economic Analysis. Gross Domestic Product (GDP), which is the value of all goods and services produced in the United States, increased by 2 percent annualized in the third quarter.

Consumer spending dropped sharply during the period. The change may reflect the limited availability of goods due to supply-chain issues, a reluctance to pay higher prices, or a drop in disposable personal income. Jeff Cox of CNBC reported:

“Spending for goods tumbled 9.2%, spurred by a 26.2% plunge in expenditures on longer-lasting goods like appliances and autos, while services spending increased 7.9%, a reduction from the 11.5% pace in [the second quarter]. The downshift came amid a 0.7% decline in disposable personal income, which fell 25.7% in [the second quarter] amid the end of government stimulus payments. The personal saving rate declined to 8.9% from 10.5%.”

Despite slower economic growth and lower consumer spending, many companies remained highly profitable during the third quarter. At the end of last week, John Butters of FactSet reported:

“At this point in time, more S&P 500 companies are beating EPS [earnings-per-share, which is a measure company profits] estimates for the third quarter than average, and beating EPS estimates by a wider margin than average…The index is now reporting the third highest (year-over-year) growth in earnings since [second quarter] 2010. Analysts also expect earnings growth of more than 20% for the fourth quarter and earnings growth of more than 40% for the full year.”

It appears that public companies remain adaptable and resilient despite the ongoing challenges created by the pandemic.

Are you ready for the November holidays? November is chock full of holidays. Thanksgiving, Veteran’s Day, Dia De Los Muertos, Diwali, Hanukkah, and Giving Tuesday are widely celebrated, and there are a significant number of less widely celebrated holidays on the calendar, too. These include:

·         World Vegan Day: Celebrating the vegan lifestyle (November 1).

·         National Sandwich Day: Celebrating all sandwiches, from peanut butter and jelly to BLTs (November 3).

·         National Stress Awareness Day: It’s a day to begin to identify, manage, and lower stress in your personal and professional lives (November 3).

·         World Tsunami Awareness Day: Within a decade, almost half of the world’s population will live in coastal areas that are vulnerable to tsunamis. The United Nations reports that having ​plans and policies in place can help manage the effects (November 5).

·         National Redhead Day: Celebrate all of the red-headed people in your life (November 5).

·         World Freedom Day: Commemorating the fall of the Berlin Wall, as well as the end of communist rule in Central and Eastern Europe (November 9).

·         Marine Corps Birthday: Celebrating the men and women who serve in the U.S. Marines (November 10).

·         World Kindness Day: Promoting the idea that kindness and compassion has the power to build and unite us (November 13).

·         National Absurdity Day: Celebrate the ridiculous, unreasonable, and crazy in everyday life and throughout history (November 20).

Here are two tree things you can talk about on National Absurdity Day: (1) Tulips were once more valuable than gold; and (2) There are almost 100 holidays in November.

Weekly Focus – Think About It
“The fact that an opinion has been widely held is no evidence whatever that it is not utterly absurd.”
—Bertrand Russell, mathematician

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Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

Weekly Market Commentary

Weekly Market Commentary

How Are Your Investments Doing Lately?  Receive A Free, No-Obligation 2nd Opinion On Your Investment Portfolio >

Weekly Financial Market Commentary

October 25, 2021

Our Mission Is To Create And Preserve Client Wealth

It’s MESSI!

No, this commentary is not about Lionel Messi, the Argentine soccer phenom who is widely regarded one of the greatest footballers of all time. However, it is about something that economists say may be as rare as Messi’s talent: Moderating Expansion with Sticky Supply-driven Inflation (MESSI).

You can see why we prefer the acronym.

MESSI is a type of inflation that occurs when “strong, but cooling demand is met by constrained, but accelerating supply, leading to transitory, yet sticky inflation.”1 The coronavirus pandemic may have produced just the right circumstances, according to Gregory Daco of Oxford Economics.

“Initially, extreme health conditions, severe social distancing measures, and unprecedented fiscal transfers to households supported a surge in spending on goods. With domestic and international supply struggling to rebound quickly and inventories being run down, prices for goods surged. Later, as the health situation improved, the re-opening of the economy led to greater demand for services which also ran into the tight supply conditions, leading to higher service sector inflation.”

The recent rapid rise of inflation has many people concerned that we may experience runaway inflation, which occurs when prices rise rapidly, or stagflation, which occurs when economic growth slows while inflation rises. Daco doesn’t believe either will prove to be the case:

“It’s not runaway inflation, and it’s certainly not stagflation…In the debate between transitory and runaway inflation, we have repeatedly said that the truth lies somewhere in the middle, with inflation likely to be ‘sticky but not oppressive.’”

The baseline view from Oxford Economics is that higher inflation will persist into the first half of 2022 before falling back to about two percent by the end of next year.

Time will tell.

What do you know about bonds? The bull market in bonds has persisted for 40 years. In September 1981, the interest rate on 10-year U.S. Treasury bonds was 15.8 percent. In 2020, the interest rate bottomed at 0.52 percent and has moved higher. Whether the bull market ends or continues, it’s important for investors to know bond basics. Test your knowledge of bonds by taking this brief quiz.

1.    In general, a bond is:
a.    A loan that an investor makes to a company, a government, or another organization
b.    An investment that pays a specific amount of interest over a set period of time
c.     An investment that is expected to return an investor’s principal at maturity
d.    All of the above

2.    If interest rates rise, what will typically happen to bond prices?
a.    Prices rise
b.    Prices fall
c.     Prices remain stable
d.    There is no relationship between interest rates and bond prices.

3.    Bonds are called many different names. Which of the following is not an alternative name for bonds?
a.    Fixed income
b.    Notes
c.     Equities
d.    Debt securities

4.    The interest rate on floating-rate notes adjusts as rates change. When might it be advantageous to have these bond investments in a portfolio?
a.    When interest rates fall
b.    When interest rates rise
c.     Anytime
d.    Never

If you have any questions about the quiz or about bonds and the role they play in your portfolio, give us a call.

Weekly Focus – Think About It
“Don’t think money does everything or you are going to end up doing everything for money.”
—Voltaire, philosopher

 

Answers: 1) d; 2) b; 3) c: 4) b

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Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

Weekly Market Commentary

Weekly Market Commentary

How Are Your Investments Doing Lately?  Receive A Free, No-Obligation 2nd Opinion On Your Investment Portfolio >

Weekly Financial Market Commentary

October 4, 2021

Our Mission Is To Create And Preserve Client Wealth

September strikes again…

If you look back over the last 20 years, September has been the worst performing month for the Standard & Poor’s 500 Index, according to Nasdaq.

This year, the S&P 500 dropped 4.8 percent in September. That wasn’t enough to wipe out gains from earlier in the third quarter, and the Index finished the quarter slightly higher. The Dow Jones Industrial Average and the Nasdaq Composite Index also tumbled in September. Their losses erased the previous two month’s gains, so the Dow and Nasdaq finished the quarter lower than they started it, reported Caitlin McCabe and Caitlin Ostroff of The Wall Street Journal.

Investors had a lot to consider during September and over the third quarter, including:

·         Resurgence of the coronavirus. On July 1, the seven-day moving average of coronavirus cases in the United States was about 14,500. Early September, the average had rocketed to about 170,000. By the end of September, the average was trending lower, reported the Centers for Disease Control.

One result of COVID-19 is that life expectancy at birth fell from 2019 to 2020. In the United States, life expectancy at birth has fallen by more than one year. Italy, Poland and Spain also have seen life expectancy drop by more than one year, reported The Economist. Lifespan increased in two countries: Denmark and Norway.

·         Global economic growth concerns. The resurgence of COVID-19 also dented global business executives’ confidence that the world economy will improve during the next six months, according to latest McKinsey Global Survey. While the majority (71 percent) of those surveyed said that economic conditions will improve in the coming months, the number was lower than the prior quarter’s 81 percent. Survey respondents said the top risks to economic growth were the pandemic, supply chain disruptions and inflation.

·         Supply chain disruptions. The supply chains issues created by the pandemic have not been easy to resolve. David Lynch of The Washington Post reported:

“The commercial pipeline that each year brings $1 trillion worth of toys, clothing, electronics and furniture from Asia to the United States is clogged and no one knows how to unclog it…the median cost of shipping a standard rectangular metal container from China to the West Coast of the United States hit a record $20,586, almost twice what it cost in July, which was twice what it cost in January, according to the Freightos index. Essential freight-handling equipment too often is not where it’s needed, and when it is, there aren’t enough truckers or warehouse workers to operate it.” Toward the end of September, more than 70 container ships were anchored near the West coast, waiting for a berth to open so goods could be delivered.  

·         Rising inflation. The cost of producing goods has been increasing. “The producer price index, a proxy for corporate or wholesaler costs, has risen for eight months in a row and, in August, was up 10.5% from a year earlier, the highest reading since June 1981. Compare this to the consumer price index, a proxy for realized manufacturer or retailer prices, which was up 5.3%. This 5.2-percentage-point gap is one of the largest in more than 40 years, suggesting higher costs are outpacing merchant end-prices…,” reported Lisa Shalett of Morgan Stanley. When producer costs rise faster than consumer prices, companies’ profitability may drop and that could negatively affect earnings.

·         Tightening central bank policy. The Federal Reserve is concerned about inflation, too, and is considering a move toward less accommodative monetary policy. In late September, Federal officials indicated that tapering – slowly reducing monthly purchases of securities – could begin later this year. Once purchases have ended, the Fed could begin to raise interest rates in late 2022 or 2023, depending on how the economy is growing, reported Jonnelle Marte of Reuters.

As if these issues weren’t enough, investors also had to process the potential effects of a global energy crisis, China’s regulatory crackdown, and another U.S. debt-ceiling standoff.

Can we talk? The pandemic accelerated the adoption of autonomous checkouts at retailers. Some stores have self-checkouts, while others have installed a “combination of sensors, cameras, computer vision and deep learning” that makes it possible to eliminate cashiers and checkouts entirely, reported Anna Oleksiuk on the Intellias blog.

At the other end of the shopping-experience spectrum is the “Kletskassa,” also known as the “chatty checkout,” which was implemented by a large grocery store chain in the Netherlands. It’s a checkout line that promises conversation with the cashier. 

“1.3 million people in the Netherlands are older than 75 years – and one large supermarket chain is making sure they’re not getting too lonely in their elder years. The Dutch government with its campaign, ‘One Against Loneliness,’ has galvanized organizations, towns, companies, and individuals to find solutions. The [grocery store chain]…is doing their part with its innovative chatty check outs,” reported The Good News Network.

The slower, chatty lane was developed specifically for older citizens, but may appeal to a much wider group of people on days when they have the time to engage.

Weekly Focus – Think About It
“For me, I am driven by two main philosophies: know more today about the world than I knew yesterday and lessen the suffering of others. You’d be surprised how far that gets you.”
—Neil deGrasse Tyson, astrophysicist

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Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

 

Investment advice offered through Research Financial Strategies, a registered investment advisor.

 

Sources:
https://www.nasdaq.com/articles/september-third-quarter-2021-review-and-outlook-2021-10-01
https://www.wsj.com/articles/global-stock-markets-dow-update-09-30-2021-11632987743 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/10-04-21_Wall%20Street%20Journal_Stocks%20End%20September%20with%20Losses_2.pdf)
https://covid.cdc.gov/covid-data-tracker/#trends_dailycases (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/10-04-21_CDC_Trends%20in%20Number%20of%20COVID-19%20Cases_3.pdf)
https://www.economist.com/graphic-detail/2021/09/29/in-many-rich-countries-covid-19-has-slashed-life-expectancy-to-below-2015-levels (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/10-04-21_The%20Economist_In%20Many%20Rich%20Countries%20COVID-19%20Has%20Slashed%20Life%20Expectancy_4.pdf)
https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-coronavirus-effect-on-global-economic-sentiment
https://www.washingtonpost.com/business/interactive/2021/supply-chain-issues/ (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/10-04-21_The%20Washington%20Post_Inside%20Americas%20Broken%20Supply%20Chain_6.pdf)
https://www.morganstanley.com/ideas/earnings-season-cost-pressures
https://www.reuters.com/business/finance/feds-harker-says-it-will-soon-be-time-begin-tapering-bond-purchases-2021-09-29/
https://www.barrons.com/articles/stock-market-today-51633076687?mod=hp_LEAD_1 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/10-04-21_Barrons_The%20Down%20Climbed%2c%20Merck%20Rose_9.pdf)
https://intellias.com/autonomous-checkouts-the-future-of-retail/
https://www.goodnewsnetwork.org/a-checkout-line-where-slower-is-better-supermarket-jumbo/
https://www.goodreads.com/quotes/tag/philosophy?page=2

Weekly Market Commentary

Weekly Market Commentary

How Are Your Investments Doing Lately?  Receive A Free, No-Obligation 2nd Opinion On Your Investment Portfolio >

Weekly Financial Market Commentary

September 27, 2021

Our Mission Is To Create And Preserve Client Wealth

Central banks have a lot of influence on investors, markets and economies.

For the last year or so, the Federal Reserve has been purchasing $120 billion of bonds every month to ensure United States markets remained liquid and interest rates remained low during the pandemic. Last Wednesday, the Fed announced that it is ready to begin to buy fewer bonds, a process known as tapering. The Fed’s taper is expected to begin before year-end. The Fed is not expected to push interest rates higher for some time so, overall, monetary policy will continue to support economic growth.

On Thursday, the Bank of England (BoE) said it expects inflation to exceed 4 percent by the end of the year. That’s twice the BoE’s target inflation rate. After the statement was issued, one measure of investors’ expectations priced in “…a 90 percent chance that the BoE would raise rates by February [2022], up from just over 60 percent before – though some economists say this is premature given the challenges to growth,” reported David Milliken and Andy Bruce of Reuters.

Expectations that central bank policies will soon be less accommodative caused yields on 10-year government bonds in the United Kingdom and the United States to rise. “Surging long-term bond yields put an outsized dent into valuations for growth companies because those firms are valued on a relatively long-term basis,” reported Nicholas Jasinski, Jacob Sonenshine and Jack Denton of Barron’s.”

While rising yields can negatively affect equity valuations, they may not hurt share prices if company earnings continue to grow and investors’ appetite for equities remains strong, reported Sean Markowicz of Schroders.

Concerns about less accommodative monetary policy may be less pressing than worries about the health of China’s financial system. The People’s Bank of China injected cash into its banking system again last week to reassure investors after a large Chinese company missed a bond payment deadline, reported Anshuman Daga, Andrew Galbraith and Tom Westbrook of U.S. News & World Report.

After a sharp sell-off early last week, major U.S. stock indices finished the week flat to slightly higher, reported Barron’s. The yield on 10-year U.S. Treasuries rose.

Banned in China. China has been trying to limit cryptocurrencies for a long time without much success. In 2019, cryptocurrency trading was banned; however, the practice persisted. Earlier this year, the Chinese government restricted banks and payment companies from providing services related to cryptocurrency transactions and warned buyers they would have no protection if they traded cryptocurrencies, reported the BBC.

Last week, China banned all cryptocurrency transactions and announced that ten regulatory agencies will work together to enforce the ban, reported Alun John, Samuel Shen, and Tom Wilson of Reuters.

Cryptocurrency is “any form of currency that only exists digitally, that usually has no central issuing or regulating authority but instead uses a decentralized system to record transactions and manage the issuance of new units, and that relies on cryptography to prevent counterfeiting and fraudulent transactions,” according to Merriam Webster.

China also banned cryptocurrency mining. Unlike many types of money, cryptocurrency is not issued by a nation’s central bank. It is mined using an energy-intensive process that “relies on many distributed computers verifying and checking transactions on a giant shared ledger known as the blockchain,” reported the BBC. Prior to the ban, China was one of the world’s largest mining centers because of its relatively low energy costs and inexpensive computer hardware.

The ban doesn’t mean China won’t have digital currency. China’s central bank is developing an official digital currency that is being tested now and is expected to be introduced more widely next year. “The ban on crypto appears designed to build support for the official digital currency while signaling to Chinese residents that financial transactions must be traceable and won’t be tolerated on decentralized blockchains,” reported Daren Fonda and Joe Woelfel of Barron’s.”

The United States also is considering how to regulate cryptocurrencies.

Weekly Focus – Think About It
“If a business does well, the stock eventually follows.”
—Warren Buffet, investor

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Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

 

Investment advice offered through Research Financial Strategies, a registered investment advisor.

 

Sources:
https://www.cnbc.com/2021/09/23/heres-what-will-happen-when-the-feds-tapering-starts-and-why-you-should-care.html
https://www.reuters.com/world/uk/bank-england-keeps-interest-rate-unchanged-01-2021-09-23/
https://www.barrons.com/articles/stock-market-today-51632471196?mod=hp_LEAD_3 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/092721_Barrons_The%20Dow%20Held%20Steady%2c%20Bitcoin%20Fell_3.pdf)
https://www.schroders.com/en/media-relations/newsroom/insights/what-do-rising-bond-yields-mean-for-the-us-stock-market/
https://www.usnews.com/news/top-news/articles/2021-09-23/china-evergrande-bondholders-in-limbo-over-debt-resolution
https://www.barrons.com/articles/stock-market-news-federal-reserve-51632527337?refsec=the-trader (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/092721_Barrons_The%20Stock%20Market%20Survived%20China%20Evergrand_6.pdf)
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
https://www.bbc.com/news/technology-58678907
https://www.reuters.com/world/china/china-central-bank-vows-crackdown-cryptocurrency-trading-2021-09-24/
https://www.merriam-webster.com/dictionary/cryptocurrency
https://www.barrons.com/articles/china-central-bank-bans-crypto-bitcoin-ethereum-prices-51632477760?mod=hp_LEAD_1 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/092721_Barrons_Crypto%20Crumbles.%20What%20Chinas%20Ban%20Means%20for%20Digital%20Currencies_11.pdf)
https://www.nytimes.com/2021/09/23/us/politics/cryptocurrency-regulators-rules.html (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/092721_New%20York%20Times_Regulators%20Racing%20Toward%20First%20Major%20Rules%20on%20Crypto_12.pdf)
https://www.brainyquote.com/quotes/warren_buffett_149678

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