Complex systems like energy grids or financial markets aren’t perfect, but they are designed to be resilient. When catastrophes happen, resiliency matters more than perfection.
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.
Optimism in the markets is being driven by innovation, ultra-low interest rates, and the promise of financial and public health support from the government. Are we running ahead of reality?
Vaccine rollout and increased spending on green infrastructure may make 2021 a much more positive year economically than 2020. Whether or not stock prices have further room to rise in the near term, is yet to be determined.
The growing role of technology in recent decades has expanded a new frontier of risk for companies and individuals alike: cybersecurity. Ironically, we refer to an invasive computer code as a virus.
All decision-making, in investing and in life, is made with partial knowledge. It is important to find the right balance of potential and security so that we can have peace of mind in the moment.
Environmental concerns have led many people to embrace electric vehicles. Demand is driving innovation and widespread adoption is sparking growth in new industries, especially around the reuse and recycling of batteries.
The vaccine announcements provide hope for the resumption of robust economic activity, but the market and the country will need to navigate a hard winter before the distribution process is functionally underway.
During the election cycle, people wonder how each candidate or political party will impact financial markets. The specific party in the White House impacts market returns less than many people would like to believe.
There is anxiety about the near future and how it will affect financial markets. It's important to remember that short term variation is usually reversed at some point, averaging out to create consistent longer term results.
The reality for small businesses in the US is that the landscape is changing, but these shifts are also opening new opportunities and new audiences for business owners willing to adapt.
Q3 2020 Market Commentary
A "K" shaped pattern recognizes the dramatic variation in recovery among different industries, demographics, and individuals, and highlights the current inequality in our economy.
The recent presidential debate highlights the disruption of interrupted communication. In the markets, and in our personal financial lives, effective communication allows us to form expectations and act accordingly.