This morning was so typical of the way things have been lately. I awoke to a story on Yahoo News of how stock futures turned negative due to concerns over a spike in the coronavirus. A few minutes later, on CNBC’s website, the headline was that cases were surging throughout the world but “… investors don’t care” … and I noticed stocks turned positive.
I think what really has me confused even more is I watch the number of deaths in the U.S. … and saw that yesterday’s reported result (via worldometers website) was the lowest in 90 days … even as the number of cases in certain states are reported to be “surging” … to use a word borrowed from the press … leaving me to wonder if one theory is correct … that many younger people are being diagnosed and have a strong survival rate. Meanwhile I’ll keep my mask on and keep my distance … as I have no real confidence … yet … in what any of the data show me.
This morning I saw two very interesting things in DailyShot that I would like to point out.
According to a chart by Yardeni, there are 6 stocks controlling a growing portion – around 24% – of the S&P (Facebook, Amazon, Apple, Netflix, Google (Alphabet) and Microsoft). This seems to be around double from what it was just 5 years ago and results in some concern if a future “tech wreck” will bring havoc to index adherents.
And has the pandemic raised a concern about your investments? A report sourcing Fidelity claims that almost a third of investors over the age of 65 sold off all of their stock holdings between February 20 and the middle of May … as did 17.5% off all stockholders. Those who remained out missed the 8% rally seen since May 15th … proving for the umpteenth time that market timing rarely works out.
Those who read my “stuff” (an economic term) know I write what is on my mind … and it sometimes strays from the economy and the markets. Today is no different.
I read that – due to protests- the Teddy Roosevelt statue is being removed from New York’s Museum of Natural History. I don’t want to enter into the “removing history” discussion but there are some fantastic – and scary – ramifications as this “remove them all” movement continues.
I learned over the weekend that William Penn owned as many as 12 slaves. There is not only a statue of him on top of Philadelphia’s city hall, but … of course … the Commonwealth in which I live is named in his honor.
If they remove the statue, that would be quite a feat … but will changing the state’s name be next on the agenda?
And, if so … what will we be called?
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 11:25 AM today …
Quick Look at the News
Coronavirus cases are surging in some areas of the world ... but are investors worried? Many don't seem to be (CNBC)https://www.cnbc.com/2020/06/22/coronavirus-cases-surge-in-us-brazil-and-rise-in-germany.html
... but that seems a bit strange ... as unemployment has jumped up ... and it becomes difficult to dip into emergency savings when there aren't any (Fox5NY)https://www.fox5ny.com/news/americans-regret-lack-of-emergency-savings-during-pandemic
Of course, one of the biggest questions that will be asked over the next few weeks will be from students returning to college. Will they be physically going ... or attending online? (USAToday)https://www.usatoday.com/story/news/education/2020/06/22/coronavirus-reopening-college-fall-2020/3210719001/
... and for those who do plan to be away from home, summer has often been a time to get a job and build up some spending money ... but jobs are not plentiful right now (USAToday)https://www.usatoday.com/in-depth/money/2020/06/22/unemployment-teenagers-struggle-find-summer-jobs-during-covid-19/3133617001/
Coins ... are they used anymore? Even though digital purchases (such as credit cards and Apple Pay) seem to be all the rage ... there is a shortage of coins ... so horde away! (NPR)https://www.npr.org/2020/06/21/880958665/the-latest-pandemic-shortage-coins-are-the-new-toilet-paper
One problem that was highlighted in the news before the virus hit was the climate. Many sweating in the Arctic today are realizing that this issue has not gone away (CBSNews)https://www.cbsnews.com/news/arctic-hottest-temperature-ever/
Another day ... another statue removed ... making some entrepreneurs realize there might be good money to be made in the statue storage and removal business (USAToday)https://www.usatoday.com/story/news/nation/2020/06/22/theodore-roosevelt-statue-removed-museum-natural-history/3234153001/