5 charts from the past week that tell an interesting story in markets and investing…
1. Dow Winners and Losers…
It’s a tale of sectors in the Dow this year.
Large tech names (Microsoft and Apple) are acting as if they are immune to recession while the shutdown has hit Industrials (Boeing, Raytheon), Energy (Exxon Mobil, Chevron) and Financials (JPMorgan Chase, American Express) the hardest.
2. Is Value Dead?
This is the question many investors continue to ask.
The returns of the Nasdaq 100 ($QQQ) vs. Warren Buffett’s Berkshire Hathaway ($BRK/B) over the last 10 years tell the story…
3. The “Second Wave“
Fears of a “second wave” in COVID-19 are growing as US daily cases hit new highs this week. Where is the new case growth coming from? Read our latest post here.
4. No V in Unemployment
The V-shaped economic recovery that many investors are betting on does not seem to be extending to employment. 19.5 million Americans continued to file for unemployment insurance last week.
Under a confusing theory, some have argued that high unemployment is now bullish as the majority of those collecting unemployment are earning a higher income than when they were working (with the $600/week additional federal stimulus).
But what what are the unintended consequences of this policy and what happens if the extra $600/week is not extended and expires at the end of July? Those are the big questions that remain unanswered.
5. Downtrend in New York 🙏
Let’s end on a positive note.
COVID-19 hospitalizations in New York have now declined for 74 consecutive days, crossing below 1000 for the first time since March 18. One downtrend we all hope continues.
And that’s it for this week. Thanks for reading.
Have a great weekend everyone!
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