Reopening the Experience Side of the US and the Globe?
February 23, 2021
Reopening the Experience Side of the US and the Globe? By Mitchell Anthony February 23, 2021 Americans love to dine, entertain, party and attend sports events. Americans love for material things had transformed over the last decade into a love for experiences that mostly involve people and gathering. Unfortunately all of those great events that Americans love to pursue came to a roaring halt at the beginning of 2020 due to Covid 19. Over the last year the regulatory environment and consumer fear has mostly prohibited the restart of experiences and most of the gathering in America and the globe is still shut down or minimized. This has had a harsh effect on a large part of the US and global economy that is tied to experiences. With vaccinations well underway in America and the globe there is hope and light at the end of this dark tunnel.Read moreThe Outlook with the Dems in Control?
January 25, 2021
The Outlook with the Dems in Control? By Mitchell Anthony January 18, 2021 The Democrats have taken control of the Senate and hold it along with the house and the presidency. While a Biden victory was expected by many, control of the Senate by the Dems was unexpected by most investors and market strategists. Democrats have a history of taxing and spending that has frightened investors concerned about the fragile state of the US economy!Read moreMarkets Moving Higher on Expectations for Vaccine Success
November 28, 2020
Markets Moving Higher on Expectations for Vaccine Success By: Mitchell Anthony November 25, 2020 Is the Covid Bounce Sustainable? The distressed areas of the US equity market have rallied hard over the last few weeks pushing the Dow Jones industrial average over 30,000 for the first time. This occurred after three vaccine makers announced that they had achieved over 90% efficacy with their vaccines. This really exciting news caused investors to scoop up airline stocks, REITs, hotels, casinos, energy, and automakers. Since November 10th the equity market leadership has been dominated by highly distressed cyclicals and industrial names and other so-called re-open names in the equity market. We also saw strength in Biden industries including environmental stocks and semi-conductors companies that are poised to benefit from new policies that Biden plans to enact once in office. At the same time we have seen the stay at home names pause after a steady and substantial six month rally. The FAANG has been flat for the last three months while at the same time these distressed value names have advanced 5 to 10% or more. Is this three week move in these distressed areas of the market sustainable? How far will distressed areas of the equity market go on the come of substantial vaccine success? These are questions that we have been asking ourselves along with the rest of the Wall Street strategists who have pondered on the change of leadership that has just occurred over the last few weeks. Read moreMarkets Climb as Virus Containment Continues
October 9, 2020
Markets Climb as Virus Containment Continues Quarterly Review, October 7, 2020 By Mitchell Anthony The US equity markets had a terrific quarter despite the fact that little progress was achieved in containing the coronavirus. US Equities lead all asset classes in the 3rd quarter of 2020 with the S&P 500 advancing 9%, MACM’s Dynamic Growth Portfolio Advancing 12%, and MACM’s Diversified Equity portfolio advancing 13.7%. Foreign Equities lagged badly in the quarter likely due to the fact that the European economy has very little share of the globe’s big cap tech industry. Gold advanced 5.8% as the Fed adopted a posture of more accommodation and more patience with inflation. Real estate failed to follow through with further gains in the third quarter after significant gains in the second quarter. Generally most REITs were flat or up 1-2% in Q3. High quality fixed income investments were mostly flat for the quarter as prices began the quarter at historical highs with only a few rational reasons why investors might expect yields to decline further. Distressed debt performed a bit better as credit quality improved during the quarter given the feds intervention and Congress’s willingness to support distressed areas of the economy.Read moreTech Wins No Matter Who Wins Election?
October 1, 2020
Tech Wins No Matter Who Wins Election? By Mitchell Anthony September 30, 2020 With the election around the corner investors are getting nervous about the impact a Biden victory might have on the equity market and the leadership in the equity market. Thus far, since Washington, the Congress, and the central bank declared war on the pandemic, the equity market has roared and the leadership has been centered in technology stocks. The reason is simple - These companies are leveraging the current environment and have a tailwind at their back. Cyclical stocks like airlines, hotels, and restaurants have begun to recover but the outlook for them is still very uncertain and highly dependent upon the termination of the virus. This group may not win no matter who wins the election or conversely could win with either candidate based upon the virus outcome. However technology is likely to win no matter what the outcome of the virus is and no matter what the outcome of the election might be.Read more