Stocks are up to start the week as individuals seem as if they are venturing out more … still masked up for the most part and I think it will take quite a bit of time before most people take the masks off while in group settings.
Still, people want to congregate with other people. I was at a gathering yesterday at a restaurant in New Jersey (outdoors) … celebrating a friend’s son becoming an Eagle Scout … and it was so enjoyable … as it was my first time doing something like this in 15 months. But I am not the only one quite jubilant over the move back toward “normalcy” … as The Economist reports on a study from the University of Gothenburg showing “Zoom fatigue” is rapidly gaining steam (although I don’t have any idea why we needed a study to tell us that).
There was incredible movement in the cryptocurrency space this weekend as most of them continued sharp downward decline. I read one tweet that I found a bit humorous as a writer said that with cryptocurrencies (unlike stocks) he didn’t have to wait until the weekend was over to find out he is losing money … (since they “trade” 24 hours a day).
While cryptocurrencies will be with us for quite some time, it also seems that fossil fuels are not going away either (regardless of the ESG push). JPMorgan Asset Management is quick to point out around 85% of the world’s energy comes from fossil fuels at present even as the IEA (“International Energy Agency”) jumps in with the belief that solar right now offers the “cheapest electricity in history.”
But not all things are so cheap.
While home prices jumped as high as 24% (year-over-year) in some places, Redfin reports that a 4-week rolling average shows inventory to be down 37% vs. 2020 … but also down around 49% compared to 2019. Yikes.
On a final note for today, I have always hated a neighbor (the one with the beautiful landscaping) for publicly displaying his affluence. The day he bought a new Porsche, he parked it in front of his home for all of us jealous neighbors to be able to see. A new boat? On a trailer in front of his house.
I just noticed a gallon of gas and some lumber in his yard.
He really knows how to show off his wealth.
Have a great day,
Joseph G. Witthohn, CFA
Emerald Asset Management PA, LLC
610 Freedom Business Center Drive
King of Prussia, PA 19406
Direct: (610) 285-9905
cell: (856) 625-7915
… As of 11:43 AM today …
Quick Look at the News
Quite a few have made comments about stocks driven by an increase in discretionary funds, but a few are borrowing money … and this could be a problem during a decline (MarketWatch)https://www.marketwatch.com/story/more-investors-than-ever-are-borrowing-to-buy-stocks-heres-what-this-really-means-for-the-market-11621583804
Sometimes you meet people and take an immediate liking to them … but other times the feeling is just the opposite. Here is why (Mic)https://www.mic.com/p/why-you-instantly-dislike-certain-people-48300978
Many look for ways to live longer (aside from looking for that famed, “Fountain of Youth”). It seems coffee might have some benefits to help you stick around for a while (EatThis)https://www.eatthis.com/news-coffee-longevity-study/
Electric cars are becoming more popular by the day … but some of the reason is drivers are being forced to accept them (NYPost)https://nypost.com/2021/05/21/california-says-uber-lyft-must-shift-to-electric-cars-by-2030/
… but it is not only cars that are electric … as an electric airplane was just introduced … although there are hurdles (many) that must be overcome … mainly due to the battery (TheFuturist)https://www.thefuturist.co/elon-musk-revealed-tesla-electric-airplane/
It is felt that one of the ways to help issues with the climate is by planting trees … but it seems that this has limits if climate change isn’t improved first (FastCompany)https://www.fastcompany.com/90639454/we-cant-plant-our-way-out-of-the-climate-crisis