Economic Outlook
MACM Portfolios and Equity Indices descend a bit further on China Uncertainty and Tame Economic Data
MACM Portfolios and Equity Indices descend a bit further on China Uncertainty and Tame Economic Data By Mitchell Anthony September 20th, 2021 The equity market’s results last week were mixed as soft but tame economic data combined with further regulatory talk by Chinese officials brought concern to the US markets. Investors seem to forget occasionally that soft economic data is much better than strong economic data. The equity markets in America are highly valued and some say ripe for a correction given the right economic event. Thus far the economic environment has been benign with very accommodative central bank policy and an outlook for modest to moderate economic growth. The inflation numbers were a bit hot but now are calming just as the Fed had predicted. This is nirvana for equity markets. As a result we have highly valued markets that are likely to stay highly valued and tilt higher until the economy stumbles badly.Read more
Markets flat last week but MACM Portfolios Advance!
Markets flat last week but MACM Portfolios Advance! By Mitchell Anthony September 7th, 2021 We had another solid week for MACM portfolios last week. MACM’s dynamic growth portfolio (DG) advanced 0.72% compared to flat returns (0.18%) for the S&P 500. Recent additions to the portfolio continued for the second straight week to lead the advance with China (CHIQ) returning 2.5% last week. The FAANG stocks which are heavy in our DG portfolio, had another week of gains advancing approximately 1.10% in total. FB -1.16%, AMZN +1.65%, AAPL +0.77%, NFLX +4.3%, GOOGL -0.59%. Investors weighed the corporate news flow and economic reports and found no compelling reasons to favor Value or Growth with both arena’s up modestly for the week. We likewise were quiet last week with no major changes to the portfolio based upon news flow. Large Cap growth IWF +0.33% and Large Cap Value IWD + 0.20%. The Tech Heavy Nasdaq QQQ advanced 0.34%.Read moreTrends in E-commerce
Trends in E-commerce By Mitchell Anthony September 3, 2021 E-commerce is an exciting industry that contains some of the most innovative companies in the world like Amazon and Ali Baba. The technology and innovation of these companies is shaping the landscape of the global economy changing trends in consumption and providing employment opportunities for hundreds of thousands of people. The industry is still very small and in the early phases of development and adoption by consumers worldwide. The current advancements in technology are enabling the industry to position itself for strong growth, and moderate valuations relative to growth make the industry leaders ripe for investment.Read moreGreat Moves in MACM Portfolios Last Week!
Great Moves in MACM Portfolios Last Week! By Mitchell Anthony August 30, 2021 Last week was a terrific week for the markets and for MACM portfolios. MACM’s dynamic growth portfolio (DG) advanced 2.75% compared to 1.6% for the S&P 500. Recent additions to the portfolio led the advance with China (CHIQ) returning 4.3% last week. The FAANG stocks which are heavy in our portfolio, had a great week advanced approximately 3%. FB +3.6%, AMZN 4.7%, AAPL +.4%, NFLX +1.8%, GOOGL + 4.8%. Growth portfolios in general did better than value as expectations for a strong rebound in the economy with boomy growth continued to wane from the minds of investors, driving money back to long-term secular growth names like the FAANG. SIFI’s (sexy, innovative, fragmented, industries) also did well as investors worry less about rising interest rates and more about owning names with strong growth characteristics.Read moreChina – The Next Economic Superpower or just the World’s Largest Economy?
China – The Next Economic Superpower or just the World’s Largest Economy? August 20, 2021 By Mitchell Anthony Is China the next Economic Superpower You cannot talk about global economics without reference to China’s attempt to infringe upon America’s title of Supreme Economic Superpower. There is clearly a race going on! China’s monarchy has made significant progress at ending poverty in China and is now at work building a large middle class that can consume, pay taxes, and support a strong Government Budget. The question that is on everyone’s mind however is: will China become a stronger economic powerhouse than America? Rest assured they will soon become a larger economy than America but will they be superior and more powerful?Read moreExpectations for Boomy Growth Sink!
Expectations for Boomy Growth Sink! July 31, 2021 By Mitchell Anthony The 2nd quarter was great yet again for equity markets, but volatile for expectations for the US Economy. How quickly the outlook can change – Boomy growth expectations from CEO’s and Market strategists that were plentiful at the beginning of the quarter were nowhere to be found by the end. Leadership in the equity markets adjusted accordingly as secular growth companies (Tech, ecommerce, services) found renewed leadership and cyclical value oriented names fell from top to bottom as the quarter unfolded. Inflation spiked as the sleeping consumption giant awoke hungry and found the kitchen in a poor state of supply with modest inventory. The Fed’s patient posture toward inflation is certainly under the microscope and is the center of worry for investors.Read moreIs Bitcoin a Mania Bound to Bust?
Is Bitcoin a Mania Bound to Bust? By Mitchell Anthony May 27, 2021 Bitcoin has no measurable value or investment thesis but yet has garnered the attention of conservative investors as well as wild speculators. It seems like the Bitcoin Mania is far from over as speculators ripe with optimism about the need for a digital currency continue to build. The current Market Value of all Bitcoin is nearly 1 Trillion and growing. Bitcoin has been extremely volatile since its inception in 2012 but the value has trended higher overall despite virtually no clear understanding by anyone of how bitcoin will become a viable currency.Read moreGOT A BAD HAIRCUT TODAY!
GOT A BAD HAIRCUT TODAY! By Mitchell Anthony April 29, 2021 Is it just me or has the quality of consumer services been falling. I’m an optimist and I always tend to hope for the best and believe in people but quite frankly I have noticed a decline in the quality of services that we have in the US economy. As an example just yesterday I got a haircut that was less than satisfactory and when I complained I was met with an indignant service provider. He offered no discount or apology for giving me a Patrick Mahomes haircut (FADE), who happens to be one of my idols, but not because of his haircut but because of the way he throws a football (NFL All Pro). I asked for a fohawk haircut like Brad Pitt has but instead got something much more like a FADE! If I hadn’t been paying attention I would’ve looked like Mr. “T” with a mohawk. Read moreConsumer Confidence Bouncing?
Consumer Confidence Bouncing?
By Mitchell Anthony
April 9, 2021
The Equity and Commodity Markets roared ahead in the first quarter of 2021 as Covid concerns fell and consumer confidence bounced. Expectations for more fiscal stimulus was met by Congress’s approval of a 1.8 trillion stimulus package full of support for almost all of those in need and then some who are not. Despite an Economy that is not yet robust or demanding high quantities of raw materials, most commodities rallied strongly as suppliers were caught off guard as demand tilted up and capacity was minimized with many mills and processing plants offline. Optimism for a broad economic recovery developed in the quarter driving up stocks and putting downward pressure on Bonds. Real Estate continued to fly higher.Read more