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July 30, 2020
One of the most perplexing aspects of our investment world is how market summaries you generally see on television and websites can mislead us about the health of the stock market. Today is an extreme case in point. Chances are, you have seen headlines telling us that the Nasdaq Composite index is up about 17% for the year, testing new highs every other day or so. The S&P 500 index is almost flat so far this year, but is not far from its late February high. The markets are moving ahead smoothly, or even robustly, right? As it turns out, most of the gains […]
July 9, 2020
A report from First Trust Advisors, L.P.: Not since the 1960s and 70s has the United States experienced social upheaval like it is experiencing today. We have protests (both peaceful and otherwise), and a massively divided political landscape. On top of that, we have a virus that is spreading across the country, creating fear and an acceptance of economic shutdowns. Originally, the scientists said we needed 15 days to slow the spread. These same scientists have consistently lengthened the time they believe keeping the economy relatively closed is a good idea. Yet, eventually, as the number of new cases of […]
July 4, 2020
Independence Day, July 4th, 2020 Ladies and Gentlemen, my name is the United States of America. I was born on July 4, 1776, conceived in freedom and liberty. That freedom has brought millions to my shores to cast their lot with me. It has also given human incentive its widest scope. Now, just 244 years later, I am a diverse, multilingual country that is bound together by a single language, English. The dominant language of the business world, of the Internet world, and the second language for most of the world. Who would have believed that 60% of the world’s […]
July 2, 2020
A report from First Trust Advisors, L.P.: A resurgence of new Coronavirus cases around the country has created uncertainty for investors. Stock markets fell last week, not because of the virus, but because investors fear another round of economy-killing, government-mandated lockdowns. We don’t expect that to happen, but when the government is involved, risks are definitely higher. After the peak in early April, the seven-day moving average for new cases bottomed on June 9 at 21,282. Since then, they’ve surged, hitting 39,662 per day in the seven days through yesterday. That’s an 86% increase in only 19 days. (Daily volatility […]