Quick Hits and Random Thoughts...

It’s been a busy week with so many great things happening that I haven’t gotten to spend time focusing on what to blog about. I will definitely be sharing more of what I’ve been up to in the very near future and can’t wait to do so. For now, some quick and random thoughts…

The Market…

The rotation from growth to value continues to be the story. It’s so interesting listening to the different takes in the current environment. If you read certain Twitter streams or listen to newer investors, you’d think the market was crashing. All the high flyers are coming back to Earth. Yet, the S&P 500 and the Dow are at all-time highs and still in strong uptrends. This is far from bearish.

In fact, it reminds me of Ralph Acampora’s famous quote - “Rotation is the life blood of a bull market”. That’s never been truer than it is today. What’s occurring in the current environment is healthy and great for the diversified investor.

The biggest difference is the speed of the rotation. When things move - especially to the downside - it happens faster than ever and can catch you off guard. Given Friday’s huge bounce in tech, maybe we are seeing the pendulum start to swing back a bit. That’s one thing I’m watching. Will tech continue to rebound or was this an overdue bounce as we continue to focus on value names?

This Week’s Headline Risk…

Two things that will continue to make headlines and could effect the market narrative this week are China and the Suez Canal fiasco.

Remember when Chinese trade talks used to swing the markets several percentage points each day? Well, it’s not exactly to that level, but watch what’s going on. The Chinese are getting quite vocal about boycotting many of our top products. If this gains momentum, it could have high ripple effects. From this week’s NY Times

Western brands are suddenly feeling the wrath of the Chinese consumer, the very shoppers who for years have clamored for their products and paid them vast amounts of money. Egged on by the ruling Communist Party, Chinese online activists are punishing foreign companies that have joined a call to avoid using cotton produced in the Chinese region of Xinjiang

There is also chatter that the Chinese may boycott the upcoming Olympic Summer Games in Tokyo. That would be a huge blow to global advertisers and who knows what it means to trade relations going forward. It’s definitely worth keeping on eye on.

Then there’s the cargo ship stuck in the canal. It’s hard not to laugh, but the delays that shippers face are going to start to effect the global supply chain and thus ultimately the consumer. Read more here.

What/Who I’m Listening To…

One of the podcasts in my weekly rotation is The Compound Show with Downtown Josh Brown. On this week’s episode, I learned more about the ramifications of the potential Biden tax proposals thanks to Ritholtz Wealth Management’s CFO, Bill Sweet. Bill and Josh did a great job explaining what it may mean to you and the markets.

Josh also had on Joe Moglia* as his guest. Joe is a legend - period. Not only is he a giant in the financial world where he starred at Merrill Lynch and moved on to become the Chairman of TD Ameritrade, but the sports world as well. He took Coastal Carolina from a fledgling program and turned them into a top 20 team. He is a true inspirational leader and he came on to talk about his new SPAC and gave an honest assessment of the state of the current SPAC boom.

*Full disclosure… I may be very biased when talking about Joe Moglia. I’ve never met him before, but he is a fellow Fordham alum who was also born in the Bronx. So his story truly resonates with me on many levels. I just wish Josh asked him if it was true that he wanted to coach football at Fordham and the school turned him away.

One of my go-to weekly trading recaps comes from my friend Brian Shannon. For you technicians out there, he is a must follow. Not only does he do a great job breaking down the major indexes, he does so on multiple time frames. If you are looking for a great technical perspective on the markets, plus some nuggets on individual names, then add his thoughts into your weekly rotation. This week’s recap is here

Lastly, there’s this. Try not too hard to judge me, but Taylor Swift and The National collaborated on a single. I don’t know why it took me so long to learn of this. Everyone knows The National is my 9th favorite band*, yet no one told me about their latest work. Check it out…

*Bonus points to anyone that knows the 80’s TV show reference about my “9th favorite band”.

Have a great week!

*Disclaimer… Nothing on this blog is to be considered financial advice and everything is said with peace and love. I share my own thoughts and experiences. This is for informational and entertainment purposes only. Any opinions here are solely mine - or in some instances, my kids’ - and do not reflect my current or former employers.