Investment Committee Member, Peter Nielsen was on the South Carolina Public Radio with Mike Switzer to discuss recent market volatility. Listen here!
Alphabet (GOOGL, $2,752.88), like Prince, who became “the artist formally known as Prince,” became the company formally known as Google in 2015. Last year, Alphabet was particularly good to investors.
Tech Investor Paul Meeks was on CNBC’s Power Lunch to discuss factors on tech stock earnings. Watch the interview for all the details.
Paul Meeks was mentioned in a receipt Barron’s article discussing tech stock market news and how tech is still getting crushed. Details here!
Despite the nasty rhetoric and the confluence of some very weird events (even for these times), investors should be thankful for their bounty this year. U.S. stocks as measured by the performance of the Standard and Poor’s (S&P) 500 Index are +25% before dividends through November 18 and a startling +110% from the COVID low in March 2020.
September performance for the S&P 500 (-4.7%), was the worst month since March 2020. The question now is, will it continue or was that enough? All major asset classes fell in September, except cash.
Although September brought an early Halloween scare to the market with the S&P 500 -5% for the month, stocks still were flat for the quarter and rose +15% (excluding dividends) for the first nine months of 2021. Not too shabby particularly since we had to shake off the collapse of Evergrande, China’s largest residential real estate developer.
When people talk about market risk, they often reference Nassim Taleb’s book “The Black Swan.” A “black swan” event is one that is extremely rare, hard to measure but exerts a materially negative impact on capital markets. By contrast, Michele Wucker coined the term “Gray Rhino” to describe obvious risks that are being ignored.
The market is efficient. That is, available information is immediately baked into securities prices. When I was a young analyst, that was not necessarily the case. I knew stuff that you did not, and that was not fair. You would think that regulators closed that loophole.
I have been worrying about inflation, particularly wage inflation, as our economy reopens. Inflation can crush the valuations of growth stocks and other “long duration” assets. However, the spreading of COVID’s delta variant and recent indications of a quicker economic slowdown.