The Olympics reliably provide great drama. Whether it’s enough to justify the cognitive dissonance of hammering forward with the Games amid a health crisis is another question
Q2 2021 Market Commentary
Global economic activity has picked up over the last three months, reflecting pent-up demand but still faces several road bumps as the pace of recovery varies between nations.
In a showing of bipartisan support, the US Senate voted for the Innovation and Competition Act. It provides widespread support for research and development in technology and science, representing a long-term view that will hopefully drive needed patterns of change.
Tax rates and mortgage rates are both on the rise. For some investors, these shifts may indicate negative trends for market prices and economic growth. If we zoom out for perspective, history tells us that these increases may not be such a bad thing.
Many industries have been unprepared for rapid surges in demand caused by the pandemic. Notably, the lumber and microprocessor industries find themselves rationing scarce quantities through higher prices.
One method of gaining perspective when faced with overwhelming data is to zoom out and understand how recent activity fits into a larger pattern. By doing this, we can gain a better understanding of the ‘relative progress’ during the pandemic versus the ‘absolute progress’ over a longer timeframe.
Cryptocurrency is an evolution of money that currently hinges on its ability to solidify widespread trust in its functionality as a store of value and a medium of exchange. Trading platforms like Coinbase may add legitimacy and security to ownership of cryptocurrency.
Q1 2021 Market Commentary
In the current pattern of growth, interest rates are likely to be volatile while both production and employment are recovering, and equity prices are likely to behave in kind.
Traffic on the Suez Canal is fully halted in both directions after the Ever Given became lodged in the embankment. Fascinating as it is, the bottleneck and the slowdown that it’s caused will ultimately be a short-term detour in the long-term trajectory of global trade.
Covid-19 could shift from a pandemic disease to an endemic one. Businesses understand this shift and new and potentially lucrative Covid-19 business lines are quickly emerging.
Q4 2020 Market Commentary
As we enter 2021, we expect to encounter potholes as well as progress, with an uneven path to global economic recovery over at least another year or two.