Pulling the economy out of the shed.

If you’ve ever stored tools or machinery in a shed or garage for an extended period of time, you know they often need some care and repair to function properly. The same appears to be true of the pandemic economy.

Economic growth in the United States is on the rebound. The latest report shows real gross domestic product, which is the value of all goods and services produced in our country, was up 6.4 percent annualized during the first quarter of 2021, an improvement from 4.3 percent in the fourth quarter of 2020. Also, pandemic restrictions have been lifted. Americans have begun to spend more and save less, and there is high demand for goods and services.

The economy appears to be primed for stronger growth, but there are some glitches in the system – namely labor and supply chains.

For the second month in a row, the May U.S. employment report showed fewer jobs gains than anticipated, although the unemployment rate dropped from 6.1 percent to 5.8 percent during the month. Then, last week, the Institute for Supply Management (ISM) reported its Manufacturing Business Survey found new orders were up and production was down.

PR Newswire reported, “Record-long lead times, wide-scale shortages of critical basic materials, rising commodities prices, and difficulties in transporting products are continuing to affect all segments of the manufacturing economy. Worker absenteeism, short-term shutdowns due to part shortages, and difficulties in filling open positions continue to be issues that limit manufacturing-growth potential.”

Concern about these issues may explain, in part, why U.S. stocks have been “trading sideways” for the last few weeks. Ben Levisohn of Barron’s reported, “The S&P 500 has gone almost nowhere since the middle of April. Yes, there have been weekly moves of more than 1 percent, up or down – two of the former, one of the latter – but the index itself has gained just 0.9 percent since then. Even recent daily moves have been relatively muted.”

Yields on 10-year Treasuries retreated last week, which may reflect investors’ concerns about the economy, too. Rates tend to move higher as the economy strengthens. Major U.S. stock indices moved higher.

Come here Rona! Heel, Covi! Prior to the pandemic, The Economist reported Euromonitor anticipated, “…the number of pet cats worldwide to grow by 22 percent between 2018 and 2024, compared with 18 percent for dogs. Cats are better suited to apartment living than dogs, so they are more at home in the densely populated, fast-growing cities of Asia.”

Then, the pandemic spurred a global pet and pet industry boom. In 2020, Americans spent $103.6 billion on their pets, reported the American Pet Products Association:

·         Food and treats:                              $42.0 billion

·         Veterinarian care and products:   $31.4 billion

·         Supplies and medicines:                $22.1 billion

·         Other services:                                $8.1 billion 

Spending is expected to rise to $109.6 billion in 2021.

Some tenacious pet owners have become “petfluencers” to offset the costs of pet ownership. They post pictures of their pets on social media. If the pet gains a following, brands will pay for the pet to pose with products. One popular Pomeranian, with more than 10 million followers, earned about $23,900 in 2020, reported Inverse.com.

The pandemic pet boom also triggered a new naming convention: pandemic-inspired (some wags might say uninspired) names. The most popular 2020 pet names were mainstream choices, such as Bella, Luna, Lucy, Max, Charlie, and Cooper. However, Covi (up 1,159 percent, possibly from zero), Rona (up 69 percent), and Corona (up 24 percent) were trending, too, per Rover.com.

Here’s the really important news: Dogs remain more popular than cats in the United States. About 63 percent of American households own dogs, while just about 43 percent have cats.

Weekly Focus – Think About It 
“‘Meow’ means ‘woof’ in cat.”
–George Carlin, Comedian

Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

Investment advice offered through Research Financial Strategies, a registered investment advisor.

Sources:
https://www.bea.gov/news/2021/gross-domestic-product-1st-quarter-2021-second-estimate-corporate-profits-1st-quarter
https://www.bea.gov/data/income-saving/personal-saving-rate
https://www.bea.gov/news/2021/personal-income-and-outlays-april-2021
https://www.bls.gov/news.release/empsit.nr0.htm
https://www.prnewswire.com/news-releases/manufacturing-pmi-at-61-2-may-2021-manufacturing-ism-report-on-business-301301816.html
https://www.barrons.com/articles/what-did-the-stock-market-do-last-week-heres-what-to-know-51622854545?refsec=the-trader (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/06-07-21_Barrons-The_Stock_Markets_Long_Run_of_Nothing_Continued_Last_Week-What_to_Know-Footnote_6.pdf)
https://www.ft.com/content/00fe4743-60dd-4c84-867f-5c13d6df43d5 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/06-07-21_FinancialTimes-Investors_Should_Look_to_Europe_When_Making_Their_Next_Move-Footnote_7.pdf)
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
https://www.economist.com/international/2019/06/22/pet-ownership-is-booming-across-the-world (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/06-07-21_TheEconomist-Pet_Ownership_is_Booming_Across_the_World-Footnote_9.pdf)
https://www.americanpetproducts.org/press_industrytrends.asp
https://www.inverse.com/science/how-petfluencers-can-be-a-force-for-good
https://www.rover.com/blog/dog-names/
https://www.goodreads.com/quotes/tag/animals

Are we at a tipping point?

One side effect of the pandemic was a collapse in demand for oil, which led to “the largest revision to the value of the oil industry’s assets in at least a decade,” reported Collin Eaton and Sarah McFarlane of The Wall Street Journal.

Last week brought another reckoning for big oil as a court ruling and shareholder influence made it clear companies need to revisit their strategies for emissions reductions and clean energy. Here’s what happened:

1.    Do it faster. In the Netherlands, a court ruled an Anglo-Dutch oil producer would need to lower its emissions by 45 percent from 2019 levels by 2030, far more quickly than the company had intended.

 “Analysts said the…ruling could set a precedent for similar cases against the world’s biggest corporate polluters, which may now face related lawsuits and be forced to overhaul their business models,” reported Derek Brower and Anjli Raval of Financial Times.

2.    Change direction. For weeks, a U.S. oil supermajor had done battle with an investment group that holds 0.02 percent of its shares. The investment group wanted the company “to gradually diversify its investments to be ready for a world that will need fewer fossil fuels in coming decades” rather than focus on carbon capture and storage solutions, reported Sarah McFarlane and Christopher Matthews of The Wall Street Journal.

 To that end, the investment group nominated four outside board-of-director candidates stating, “A Board that has underperformed this dramatically and defied shareholder sentiment for this long has not earned the right to choose its own new members or pack itself in the face of calls for change…shareholders deserve a Board that works proactively to create long-term value, not defensively in the face of deteriorating returns and the threat of losing their seats.”

Other shareholders agreed and, in a highly unusual outcome, two of the four candidates were elected to the board, reported Ben Geman of Axios.

3.    Less is more. Two other multinational energy companies experienced shareholder uprisings recently, reported Sergio Chapa and Caroline Hyde of Bloomberg. Shareholder proposals to aggressively reduce emissions and limit pollution by a company’s customers were approved despite the companies’ boards urging shareholders to vote against the changes.

How much is a CEO worth? The COVID-19 pandemic created enormous losses for many companies so it might seem logical some CEO pay packages would decline along with companies’ profits. In fact, a number of CEOs announced high-profile salary cuts last year, reported Axios.

The stinger is salary is often a small part of CEO compensation. While executive compensation packages vary from company to company, they often include:

·         Base salary

·         Short-term incentives such as bonuses

·         Long-term incentives such stock options

·         Benefits such as health and life insurance, retirement plans, and paid vacations

·         Perquisites (perks), such as financial counseling, tax preparation, security, cars and drivers, corporate aircraft, and country club fees

When all aspects of CEO pay are considered, the majority of CEOs received higher pay in 2020.

“Fortunately for those CEOs, many had boards of directors willing to see the pandemic as an extraordinary event beyond [CEOs’] control. Across the country, boards made changes to the intricate formulas that determine their CEOs’ pay – and other moves – which helped make up for losses created by the crisis,” reported Stan Choe of the AP.

As a result, median pay for CEOs at companies in the Standard & Poor’s 500 Index was $12.7 million, according to data analyzed by Equilar for the AP. That’s a 5 percent pay increase over 2019 levels. In contrast, wages and benefits for non-government workers who were employed went up by 2.6 percent in 2020.

“Companies have to show how much more their CEO makes than their typical worker, and the median in this year’s survey was 172 times. That’s up from 167 times for those same CEOs last year, and it means employees must work lifetimes to make what their CEO does in just a year,” reported AP.

Weekly Focus – Think About It

“Consumption is the sole end and purpose of all production; and the interest of the producer ought to be attended to, only so far as it may be necessary for promoting that of the consumer.”
–Adam Smith, Economist and philosopher

Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

Investment advice offered through Research Financial Strategies, a registered investment advisor.

Sources:
https://www.wsj.com/articles/2020-was-one-of-the-worst-ever-years-for-oil-write-downs-11609077600 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/06-01-21_WSJ-2020_was_One_of_the_Worst_Ever_Years_for_Oil_Write-Downs-Footnote_1.pdf)
https://www.ft.com/content/fa9946b9-371b-46ff-b127-05849a1de2da (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/06-01-21_FinancialTimes-Climate_Activists_Hail_Breakthrough_Victories_Over_Exxon_and_Shell-Footnote_2.pdf)
https://www.wsj.com/articles/oil-giants-are-dealt-devastating-blows-on-climate-change-as-pressures-intensify-11622065455 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/06-01-21_WSJ-Oil_Giants_are_Dealt_Devastating_Blows_on_Climate_Change_as_Pressures_Intensify-Footnote_3.pdf)
https://www.businesswire.com/news/home/20210202005810/en/Engine-No.-1-Responds-to-ExxonMobil’s-Board-Announcement-and-Financial-Results
https://www.axios.com/exxon-investor-rebuke-on-climate-change-01f75030-85d7-42e4-a9d7-33f6a6b646e8.html
https://www.bloomberg.com/news/articles/2021-05-26/chevron-investors-back-climate-proposal-in-rebuke-to-management (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/06-01-21_BloombergGreen-Chevron_Investors_Back_Climate_Proposal_in_Rebuke_to_C-Suite-Footnote_6.pdf)
https://www.barrons.com/articles/stock-market-earnings-news-storm-clouds-51622244159?refsec=the-trader (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/06-01-21_Barrons-Its_a_Peak_Good_News_Market-Why_That_Could_be_a_Problem-Footnote_7.pdf)
https://www.axios.com/ceos-raises-pay-covid-3f0bda28-0470-4f34-a216-7fb2c72e20e3.html
https://chiefexecutive.net/components-of-an-executive-compensation-plan/
https://www.investopedia.com/financial-edge/0510/ceo-benefits-you-wish-you-had.aspx
https://apnews.com/article/ceo-pay-rises-again-b1d87eb36ac921a159268a6b830fc308
https://www.adamsmith.org/adam-smith-quotes

What do markets hate?

They hate uncertainty, and recently there has been plenty of it. Some of the questions plaguing economists and pundits include:

Why aren’t people returning to work? Americans, like people in other parts of the world, have not been rejoining the workforce at the pace many had anticipated. One of the most frequently cited theories was explained by The Economist:

“In America businesspeople, almost to a pinstripe, are convinced that the $300-a-week boost to unemployment insurance explains the shortages. However, pundits do not agree on whether stimulus handouts really lead people to shirk. The evidence is hazy elsewhere, too…Australia ditched its job-protection scheme in March, and shortages have worsened.”

The unemployment data has inspired many theories about why jobs aren’t filling more quickly. These include fear of contracting COVID-19, low hourly pay, and lack of dependent care, to name a few. Some states recently modified unemployment programs, so there soon may be new data to help clarify the situation.

Is the Federal Reserve thinking about raising rates or slowing bond purchases? In June 2020, Fed Chair Jerome Powell famously said, “We’re not even thinking about thinking about raising rates.” Some are wondering whether that has changed. The minutes from April’s Federal Open Market Committee meeting, which were released last Tuesday afternoon, included a statement that raise questions. It said:

“A number of participants suggested that if the economy continued to make rapid progress toward the Committee’s goals, it might be appropriate at some point in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases.”

Of course, the economic picture isn’t as robust as it was in April. Since then, we’ve seen a weaker-than-expected employment report and higher-than-expected inflation data. While one month does not establish a trend, investors, economists, and pundits will be watching economic data releases closely for clues about economic recovery.

Will inflation prove to be transitory or will it persist? Investors also are worried the Federal Reserve will keep rates low for too long. James Politi of Financial Times reported:

“The Fed has argued that strong monetary support for the economy is still needed because of the risk of a slowdown in the recovery and the shortfall in employment compared to pre-pandemic levels. Nor does it expect the current spike in consumer prices to last, arguing that it is being fueled by supply chain bottlenecks and the economic reopening.”

Others aren’t so sure the Fed is right. Last Tuesday, former U.S. Treasury Secretary Lawrence Summers said the Fed’s latest forecasts suggest it is misreading the economy and encouraging complacency, reported Greg Robb of MarketWatch.

Last week, the Standard & Poor’s 500 and Dow Jones Industrial Indices moved slightly lower while the Nasdaq Composite moved slightly higher.

Ahhh, the joys of parenting. With Mother’s Day behind us and Father’s Day ahead, it seemed an appropriate time to share some tweets about the parenting experience. Here are a few entertaining examples shared online by parents and rounded up by Buzzfeed:

“Does anyone have directions to that village everyone says will raise my children? It sounds wonderful.”
–Not Your Trending Mom

“Hi, I’m a parent. You may remember me from such greats as ‘Repeating Myself’ and ‘Arguing over Shoes’ and ‘Stepping on Cereal.’”
–Rodney LaCroix

“Thoughts and prayers for my son who thought it would be funny to tell me ‘I’ll get to it when I get to it, woman.’”
–Mom On The Rocks

“Why aren’t there any horror movies called ‘My 4 year old fell asleep in the car at 5pm.’”
–threetimedaddy

“7 [year old] son: May I have some water?

Me: What are the magic words?

7 [year old] son: I can get it myself.

Me: There you go.”
–Laura Marie

“Blew my nose in front of my daughter and her friends today. Please respect her privacy during this difficult time.”
–Simon Holland

Parenting is never an easy job, and the pandemic made it a lot trickier. Parents have to make important financial planning decisions involving children, too. Often these are related to legacy planning, and sometimes they involve special needs. If you would like to talk about the needs of your family and identify potential solutions, give us a call.

Weekly Focus – Think About It
“It does not do to leave a live dragon out of your calculations, if you live near one.”
–J.R.R. Tolkien

Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

Investment advice offered through Research Financial Strategies, a registered investment advisor.

​Sources:
https://www.economist.com/leaders/2021/05/22/what-to-do-about-a-labour-crunch (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/05-24-21_TheEconomist-What_to_Do_About_a_Labour_Crunch-Footnote_1.pdf)
https://www.cbsnews.com/news/enhanced-unemployment-benefits-end-worker-funding/
https://www.wsj.com/video/powell-were-not-even-thinking-about-thinking-about-raising-rates/0C020333-947B-411F-912E-6EF76EFE18C0.html
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20210428.pdf (Page 10)
https://www.ft.com/content/9935be40-d041-4b7d-acac-4d86f3c25100 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/05-24-21_FinancialTimes-Larry_Summers_Accuses_Federal_Reserve_of_Dangerous_Complacency_Over_Inflation-Footnote_5.pdf)
https://www.marketwatch.com/story/summers-says-fed-officials-only-need-to-walk-outside-to-know-theyve-got-it-wrong-on-jobs-and-easy-policy-11621351060
https://www.barrons.com/articles/bitcoin-stock-market-51621643806?mod=hp_LEAD_2 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/05-24-21_Barrons-Bitcoins_Tumble_Shook_Up_Stocks-What_to_Make_of_the_Markets_Messy_Week-Footnote_7.pdf)
https://www.buzzfeed.com/mikespohr/best-mom-tweets-2020-4
https://www.buzzfeed.com/asiawmclain/dad-tweets-that-keep-it-real?origin=web-hf
https://www.projectmanager.com/blog/planning-quotes

Uncle Inflation is here. Will he overstay his welcome?

Ever since the financial crisis, central banks have pursued expansionary monetary policies to encourage reflation and avoid deflation. Well, it’s taken some time, but inflation is finally here.

Last week, major stock indices in the United States moved lower after inflation, as measured by the Consumer Price Index (CPI), was four times higher than anticipated, reported Ben Levisohn of Barron’s.

Higher inflation is the result of a supply and demand imbalance. As the pandemic has calmed in the United States, consumers have emerged eager to spend money – so eager that consumer spending is about 5.5 standard deviations above average. That’s a lot.

The problem is finding stuff to buy. The Economist explained, “…red-hot demand is increasingly met slowly or not at all…Nowhere are shortages more acute than in America, where a boom is under way. Consumer spending is growing by over 10 percent at an annual rate, as people put to work the $2trn-plus of extra savings accumulated in the past year.”

Shortages are the result of two kinks in the supply hose.

The first is the supply chain. There is a shortage “of everything from timber to semiconductors,” which are essential to building other products. In addition, shipping containers have become a scarce resource, causing the cost of shipping goods from China to the United States to triple, reported The Economist.

The second is labor. This week’s higher-than-expected inflation data mirrored last week’s lower-than-expected employment data. No one is certain why the employment numbers were lackluster, although theories abound. Regardless, there are limits on what companies can produce when they have too few employees.

The question is whether supply chains can be straightened so demand for goods and services can be met. If so, higher inflation may prove transitory as the Federal Reserve and some economists anticipate. If not, inflation may stick around. Time will tell.

Confidence is returning. The big news last week was the announcement from the Centers for Disease Control (CDC) that fully vaccinated Americans can resume normal activities without wearing masks or social distancing, except where required by law. Suffice it to say, people are ready to return to normal.

Results from the latest Axios-Ipsos Coronavirus survey, conducted in early May, found Americans were feeling more optimistic. Among those surveyed:

·         59 percent had visited friends or relatives during the previous week.

·         54 percent had gone out to eat during the previous week.

·         31 percent had made plans for the summer.

·         18 percent had a stronger sense of emotional well-being, a six-point jump from the prior survey.

·         60 percent indicated trips to salons, barber shops, and spas were low- or no-risk activities, up six points from the last survey.

If your exuberance about resuming “normal” life has been tempered by a reluctance to change the routines you’ve adopted during the pandemic, you’re not alone. Medical experts at Northwestern University explained:

“The emotional impact of this past year may linger with us for longer than we might expect. The key is not to feel forced to snap back into a routine overnight. Give yourself time and understand that your emotional journey back to freely socializing in vaccinated cohorts may look very different from those around you.”

As some people say, “You do you.”

Weekly Focus – Think About It
“We must have ideals and try to live up to them, even if we never quite succeed. Life would be a sorry business without them. With them it’s grand and great.”
–Lucy Maude Montgomery, Author

Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

Investment advice offered through Research Financial Strategies, a registered investment advisor.

Sources:
https://www.economist.com/finance-and-economics/2015/02/19/the-high-cost-of-falling-prices (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/05-17-21_TheEconomist-The_High_Cost_of_Falling_Prices-Footnote_1.pdf)
https://www.barrons.com/articles/stock-market-volatility-isnt-the-big-problem-economic-volatility-is-51621039530?refsec=the-trader (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/05-17-21_Barrons-Its_Not_Market_Volatility_You_Need_to_Worry_About-Its_Economic-Footnote_2.pdf)
https://www.economist.com/leaders/2021/05/15/the-coming-global-economic-boom-could-have-a-sting-in-the-tail (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/05-17-21_TheEconomist-The_Coming_Global_Economic_Boom_Could_Have_a_Sting_in_the_Tail-Footnote_3.pdf)
https://www.freightwaves.com/news/no-relief-global-container-shortage-likely-to-last-until-2022
https://www.federalreserve.gov/newsevents/speech/brainard20210511a.htm
https://www.cdc.gov/coronavirus/2019-ncov/vaccines/fully-vaccinated.html
https://www.ipsos.com/en-us/news-polls/axios-ipsos-coronavirus-index
https://news.northwestern.edu/stories/2021/03/perspective-covid-19-habits/
https://www.bustle.com/articles/147987-20-empowering-quotes-by-female-authors-that-are-perfect-to-decorate-your-office-with

Like a gender reveal gone wrong, last week’s employment report delivered an unexpected surprise.

Economists estimated 975,000 new jobs would be created in April. The United States Bureau of Labor Statistics (BLS) reported there were just 266,000. That’s a big miss.

Economists, analysts, and the media offered a wealth of theories to explain the shortfall. These included:

·         Pandemic fear. A March U.S. Census survey found 4.2 million people aren’t working because they fear getting or spreading the coronavirus, reported Gwynn Guilford of The Wall Street Journal. That’s more than half of the 8.2 million non-farm jobs that need to be recovered to reach pre-pandemic employment levels.

·         Too-generous unemployment benefits. Another theory is federal unemployment benefits ($300 a week) have created a labor shortage. The theory is being tested. Last week, Montana announced it will no longer participate in federal unemployment programs. Instead, it will offer a $1,200 return-to-work bonus, reported Greg Iacurci of CNBC.

 ·         Low pay. Some say Americans are less willing to work for low pay than they were before the pandemic. Christopher Rugaber of the AP interviewed a Texas staffing office manager who reported job seekers are turning down jobs that pay less than unemployment benefits. 

A former retail worker told Heather Long of The Washington Post, “The problem is we are not making enough money to make it worth it to go back to these jobs that are difficult and dirty and usually thankless. You’re getting yelled at and disrespected all day.”

·         Lack of childcare. Many women who want to work left jobs during the pandemic to care for children. The April employment report showed a slight decrease in the rate of unemployment for adult women; however, it resulted from women giving up on job searches rather than finding work. The Institute for Women’s Policy Research reported, “…more women continued to exit rather than enter the workforce: 165,000 fewer women had jobs or were actively looking for work in April than in March.”

·         Quirky data. Statistical distortions or seasonal factors could be responsible. “The more time the market has to digest [the] report, the more the report seems a bit of an anomaly relative to other data,” said a deputy chief investment officer cited by Mamta Badkar and Naomi Rovnick of Financial Times.

 Other data include the ADP^® National Employment Report^™ which showed 742,000 new jobs in April. The report reflects real-time data on one-fifth of U.S. private payroll employment. 

·         Rethinking work. “There is also growing evidence – both anecdotal and in surveys – that a lot of people want to do something different with their lives than they did before the pandemic. The coronavirus outbreak has had a dramatic psychological effect on workers, and people are reassessing what they want to do and how they want to work, whether in an office, at home, or some hybrid combination,” reported The Washington Post.

U.S. financial markets shrugged off the news. The Standard & Poor’s 500 Index finished the week at a record high, and 10-year Treasury rates finished Friday where they started.

Check out the big brain on Brett! There is a long-standing scientific theory about the size of a mammal’s body relative to its brain offers an indication of intelligence. The findings of a recent study seem to debunk that idea, reported Science Daily.

 An international team of scientists investigated how the brain and body sizes of 1,400 living and extinct mammals evolved over time. They made several discoveries. One was significant changes in brain size happened after two cataclysmic events in Earth’s history: a mass extinction and a climatic transition.

Not every mammal changed in the same ways. Elephants increased body and brain size. Dolphins and humans decreased body size and increased brain size. California sea lions increased body size without comparable increases in brain size. All have high intelligence.

“We’ve overturned a long-standing dogma that relative brain size can be equivocated with intelligence…Sometimes, relatively big brains can be the end result of a gradual decrease in body size to suit a new habitat or way of moving – in other words, nothing to do with intelligence at all. Using relative brain size as a proxy for cognitive capacity must be set against an animal’s evolutionary history,” stated Kamran Safi, a research scientist at the Max Planck Institute of Animal Behavior and one of the study’s authors.

Of course, intelligence doesn’t always translate into wise behavior.

Studies of behavioral finance have found the human brain is more interested in survival than saving. “It turns out that, when it comes to money matters, we are wired to do it all wrong. Our brains have evolved over thousands of years to focus on short-term survival in a dangerous world with limited resources. They were not designed for today’s optimal financial behaviors,” wrote financial psychologist Dr. Brad Klontz, a CNBC contributor.

No one knows how the COVID-19 pandemic will be remembered over time, but it appears to have influenced the way people think about money in some significant ways. An April 2021 Bank of America survey reported:

·         81 percent of participants saved money, that would normally be spent on entertainment, dining, and travel, and set it aside in emergency, savings, and other types of accounts.

·         46 percent used pandemic downtime to put their finances in order.

·         44 percent said their risk tolerance changed: 23 percent became more aggressive and 21 percent more cautious.

If the pandemic has changed your thinking, let’s review your financial plan and align it with your current circumstances and thinking.

Weekly Focus – Think About It 
“It doesn’t matter how beautiful your theory is, it doesn’t matter how smart you are. If it doesn’t agree with experiment, it’s wrong.”
–Richard P. Feynman, Theoretical physicist

Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

Investment advice offered through Research Financial Strategies, a registered investment advisor.

Sources:
https://www.bls.gov/news.release/empsit.nr0.htm
https://www.wsj.com/articles/the-other-reason-the-labor-force-is-shrunken-fear-of-covid-19-11618163017 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/05-10-21_WSJ-The_Other_Reason_the_Labor_Force_is_Shrunken-Fear_of_COVID-19-Footnote_2.pdf)
https://www.cnbc.com/2021/05/05/montana-opts-to-end-300-unemployment-boost-other-states-may-too.html
https://apnews.com/article/lifestyle-coronavirus-pandemic-health-business-82aa4f9fddcea22918d010c55b5e55b3
https://www.washingtonpost.com/business/2021/05/07/jobs-report-labor-shortage-analysis/ (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/05-10-21_TheWashingPost-Its_Not_a_Labor_Shortage-Its_a_Great_Reassessment_of_Work_in_America-Footnote_5.pdf)
https://iwpr.org/media/press-releases/mothers-day-surprise-women-lose-jobs-and-continue-to-leave-the-labor-force-while-unemployment-among-black-and-latina-women-remains-high/
https://www.ft.com/content/9ef97745-c4d7-4273-b1f1-07d5d55efbc8 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/05-10-21_FinancialTimes-S_and_P_500_Ends_at_Record_Despite_Disappointing_Jobs_Report-Footnote_7.pdf)
https://adpemploymentreport.com/2021/April/NER/NER-April-2021.aspx
https://www.barrons.com/articles/why-the-stock-market-rose-this-past-week-what-to-know-51620430506?mod=hp_LEAD_3 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/05-10-21_Barrons-The_Dow_Surged_to_a_Record_High_Because_the_Bad_News_Wasnt_So_Bad-Footnote_9.pdf)
https://www.sciencedaily.com/releases/2021/04/210429090227.htm
https://www.mpg.de/16785076/disaster-brain-size?c=2249
https://www.cnbc.com/2019/12/09/when-it-comes-to-money-our-brains-are-wired-to-do-it-all-wrong.html
https://newsroom.bankofamerica.com/content/newsroom/press-releases/2021/04/bank-of-america-study-finds-nearly-half-of-affluent-americans-ge.html
https://www.brainyquote.com/quotes/richard_p_feynman_160383

It’s Spring and economic recovery is in the air.

Last week, the Bureau of Economic Analysis reported the U.S. economy grew at a 6.4 percent annualized rate for the first three months of 2021. While that’s good news for companies and workers, asset managers are checking their expectations.

The stock market reflects what investors think may happen in the future. During the past year, major U.S. stock indices moved higher as investors anticipated vaccines and economic recovery, reported Patti Domm of CNBC. Since its March 2020 low, the Standard & Poor’s 500 Index has gained 88 percent.

Amidst strong signs of recovery in the United States, some asset managers are positioning for “inflation and tapering,” according to a source cited by Naomi Rovnick of Financial Times. “Investors have topped up their cash holdings at the fastest rate since March 2020 as debate intensifies over whether stock markets will continue rallying now the U.S. economic recovery from the pandemic is firmly under way.”

Investors were feeling cautious last week, but there were no signs of tapering, which occurs when the Federal Reserve begins to buy fewer bonds. On Wednesday, the Fed left its supportive policies in place.

When the Fed begins to change course and rates move higher, equity market valuations may adjust. “The main worry for stocks is that higher bond yields translate into lower equity valuations. Higher yields reduce the current value of future profits and therefore can reduce earnings multiples,” reported Jacob Sonenshine of Barron’s.

Profits were strong during the first quarter of 2021. U.S. companies continued to report exceptional earnings last week. With 60 percent of firms in the Standard & Poor’s 500 Index reporting, the blended earnings growth rate was 45.8 percent. More than 8 of 10 companies have reported better than expected earnings, reported John Butters of FactSet.

Major U.S. stock indices finished the week flat to down. Rates on 10-year Treasuries edged higher.

Estimates suggest there will be 25 million by 2100. Take a guess: electric vehicles, household robots, wild elephants, centenarians, or streaming services per household?

 ·         Electric vehicles. There may be far more than 25 million – estimates suggest 145 million – on the road by 2030.

·         Household robots. Domestic robots that offer companionship or help with tasks like lawn mowing, vacuuming, and mopping are becoming popular. Estimates suggest about 55 million domestic bots will be sold next year.

·         Wild elephants. From 1989 to 2018, the number of elephants in the wild doubled to 34,000, reported Earth.org.

·         Streaming services per household. Currently, the average number of streaming services per household is four. There’s room for growth, but probably not that much.

·         Centenarians. The world is in the midst of a longevity revolution and, by 2100, there may be as many as 25 million centenarians – people age 100 or older – around the globe, according to a source cited by Science Direct.

The world’s 65 and older population is growing rapidly.

According to the most recent population estimates from the United Nations, “…1 in 6 people in the world will be over the age 65 by 2050, up from 1 in 11 in 2019. The latest projections also show the number of people aged 80 or over will triple in the next 30 years. In many regions, the population aged 65 will double by 2050, while global life expectancy beyond 65 will increase by 19 years.”

Longevity deserves more thought than it often receives. It is an essential part of every financial and retirement plan, influencing savings goals, investment choices, and retirement income levels. Yet, people often underestimate their potential longevity.

In the United States, the average life expectancy at age 65 is 19 years, according to the Centers for Disease Control (CDC). Consequently, many people assume they should plan to live to age 84. However, the CDC estimate is an average. Half of 65-year-olds will live beyond age 84.

When it comes to planning for the future, having above average expectations for longevity may be a good idea.

Weekly Focus – Think About It
“I am not more gifted than the average human being. If you know anything about history, you would know that is so – what hard times I had in studying and the fact that I do not have a memory like some other people do…I am just more curious than the average person and I will not give up on a problem until I have found the proper solution. This is one of my greatest satisfactions in life – solving problems – and the harder they are, the more satisfaction do I get out of them. Maybe you could consider me a bit more patient in continuing with my problem than is the average human being. Now, if you understand what I have just told you, you see that it is not a matter of being more gifted but a matter of being more curious and maybe more patient until you solve a problem.”
–Albert Einstein, Theoretical physicist

Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

Investment advice offered through Research Financial Strategies, a registered investment advisor.

Sources:
https://www.bea.gov/sites/default/files/2021-04/gdp1q21_adv.pdf
https://www.cnbc.com/2020/12/30/how-the-pandemic-drove-massive-stock-market-gains-and-what-happens-next.html
https://www.ft.com/content/dc17fddb-3e09-419d-aabe-90ee89511bc5 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/05-03-21_FinancialTimes-Investors_Move_into_Cash_at_Fastest_Rate_Since_March_Last_Year-Footnote_3.pdf)
https://www.barrons.com/articles/the-stock-market-ignored-the-fed-meeting-why-that-could-be-a-mistake-51619715102 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/05-03-21_Barrons-The_Stock_Market_Ignored_the_Fed_Meeting-Why_that_Could_be_a_Mistake_Footnote_4.pdf)
https://insight.factset.com/sp-500-earnings-season-update-april-30-2021
https://www.barrons.com/market-data (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/05-03-21_Barrons-Market_Data-Footnote_6.pdf)
https://www.cnbc.com/2021/04/29/global-electric-vehicle-numbers-set-to-hit-145-million-by-2030-iea-.html
https://www.mordorintelligence.com/industry-reports/household-robots-market
https://earth.org/kenya-is-seeing-a-boom-in-elephants/
https://discover.jdpa.com/hubfs/Files/Industry%20Campaigns/TMT/New%20Streaming%20Services%20Cut%20into%20Netflixs%20Market%20Share%20While%20The%20Mandalor.._.pdf
https://www.sciencedirect.com/science/article/abs/pii/S0047637416302548?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosam&stream=top
https://www.un.org/development/desa/en/news/population/our-world-is-growing-older.html
https://www.cdc.gov/nchs/data/vsrr/VSRR10-508.pdf
https://www.goodreads.com/quotes/tag/average