Investors appear to be exceedingly hopeful a rate cut will salvage their financial plans. The markets are stirring, and uncertainty abounds. Markets don’t like uncertainty, and that likely will prevail for the rest of the year.
‘By year-end 2045, an estimated $84.4 trillion will change hands from aging households passing their wealth on to heirs and charities. This shift in wealth will reshape the wealth management landscape over the next quarter-century and will force advisors to alter their existing business models
I recently finished the book by Ray Dalio, The Changing World Order. He paints a grim picture of where we are as a country, using history to guide the reader through why he is concerned. Very thought provoking from the founder of one of the world’s largest investment firms, to say the least.
I start this letter weighing in on Blockchain, NFTs and the coins such as Bitcoin. If none of that means anything to you, not to worry! I will give some basic descriptions. But large pools of money are finding their way here, so I cannot ignore it any longer.
Professional money managers got scared, wealthy investors got scared and the market sold off with the unknowns of Covid earlier this year. Today, the markets are making all-time highs. Contrarians and value-oriented investors like us have suffered owning good, but mostly under-performing stocks.
Innovation is running at a very fast pace and seems to be picking up momentum. In the past, to start a company, you raised some money from friends and family, maybe a venture capitalist, and then, as you were successful, you likely considered the option of selling shares to the public
best describes this bull market to me, and as the song says, ‘not too soft, not too loud, just enough to draw a crowd’. As you know, the current economic climate is very good, interest rates are only slightly higher, margin debt has been running high vs. GDP for several years now but the chart
Large companies that are leading the market are financially solid. Investors that have been shaken off of stocks over the past 2 severe corrections, 2000 and 2009, are growing restless. In fact investors are eager to buy any dips the market gives them.
The polls have not had an effect on the markets so far this election the best that I can tell, so I expect either candidate is ok for the market. This might be the only redeeming quality I can find so far for this highly emotional and nasty election.
The sudden volatility of the markets over the last week or so shows that investors remain nervous and willing to hold even more cash than they have already stockpiled. China came back into the spotlight, and focus is trying to shift away from Fed.
Putting things in perspective is important. All of the countries above have a total stock market valuation of less than 10% of that of the USA….COMBINED.
If you unexpectedly end up somewhere suspected, why not suspect that you might end up somewhere unexpected.
