The Fall of the Titans!
The performance of a market-cap-weighted index is driven by a handful of stocks with the largest capitalizations, but these stocks do not remain at the top for long. A smart beta multi-factor strategy is a good solution for investors concerned about the concentration risk of a passive market-cap tracker.
Weekly Gasoline Prices: Regular and Premium Up 7 Cents
As of May 10, the price of Regular and Premium was up seven cents each from the previous week. According to GasBuddy.com, California has the highest average price for Regular at $4.09 and Mississippi has the cheapest at $2.62. The WTIC end of day spot price closed at 64.92, up 0.7% from last week.
No Country Has Ever Taxed Itself into Prosperity
One of my all-time favorite quotes comes from Winston Churchill, who was just as witty as he was a great leader: “We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.”
The Big Four Economic Indicators: April Employment
This commentary has been updated to include this morning's release of Nonfarm Employment. April's 266K increase in total nonfarm payrolls had revisions that resulted in 78K fewer jobs than previously reported. ("Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.") The Investing.com consensus was for 978K jobs gained and the unemployment rate to fall to 5.8%.
David Rosenberg – The Consensus is Wrong about Stocks, Bonds and Inflation
The consensus is that U.S. equities will deliver strong performance as the economy recovers, and that higher inflation will drive rising interest rates. All of that is wrong, according to David Rosenberg.
When Will Powell’s Fed Have To Blink On Policy?
It was ever so tempting to devote today’s letter to a discussion of President Biden’s latest massive government spending, which he proposed Wednesday night in his “First Hundred Days” speech before Congress.