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.
(The one-year numbers in the scorecard below remain noteworthy. They reflect the strong recovery of U.S. stocks from last year’s coronavirus downturn to the present day.)
Data as of 5/21/21
Standard & Poor's 500 (Domestic Stocks)
Dow Jones Global ex-U.S.
10-year Treasury Note (Yield Only)
Gold (per ounce)
Bloomberg Commodity Index
S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.
Sources: Yahoo! Finance; MarketWatch; djindexes.com; Federal Reserve Bank of St. Louis; London Bullion Market Association.
Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.
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.’”
“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.’”
“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.”
“Blew my nose in front of my daughter and her friends today. Please respect her privacy during this difficult time.”
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.”
Recipe of The Week
Soufflé Pancake with Miso Mushrooms
Hands-On Time 15 Mins
Total Time 20 Mins
Yield Serves 4
- 1 ½ cups all-purpose flour
- 2 teaspoons sugar
- 2 teaspoons baking powder
- 1 teaspoon baking soda
- 1 teaspoon kosher salt
- 1 ¼ cups whole milk
- 1 large egg yolk plus 4 large egg whites
- 2 teaspoons grated fresh ginger
- 2 teaspoons toasted sesame oil
- 5 tablespoons unsalted butter, melted, divided
- 2 tablespoons tamari, divided
- 3 garlic cloves, grated, divided
- 4 scallions, sliced, white and green parts separated
- 1 pound mixed wild mushrooms, stems removed, halved if large
- 1 head baby bok choy, stems chopped, leaves thinly sliced
- 2 tablespoons white miso
- sriracha, for serving
- Whisk flour, sugar, baking powder, baking soda, and salt in a large bowl. Whisk milk, egg yolk, ginger, oil, 2 tablespoons butter, 1 tablespoon tamari, and ⅓￼ of the garlic in a bowl. Add milk mixture to flour mixture; stir until just combined. Beat egg whites with an electric mixer on medium-high until stiff peaks form, about 3 minutes. Gently fold into batter.
- Heat 1 tablespoon butter in a 10-inch nonstick skillet over medium. Pour in batter. Reduce heat to medium-low and cook, covered, until batter is bubbling and edges are set, 8 to 10 minutes. Using a metal spatula, flip pancake. Continue cooking, uncovered, until underside is golden and a toothpick comes out clean, 4 to 6 minutes. Transfer to a serving platter.
- While pancake cooks, heat 1 tablespoon butter in a large skillet over medium. Add scallion whites and remaining garlic and cook 2 minutes. Add mushrooms and bok choy stems; cook, stirring, until mushrooms are golden, about 3 minutes. Stir miso and remaining 1 tablespoon tamari and 1 tablespoon butter into skillet until smooth. Add bok choy leaves; cook 1 minute more. Remove from heat.
- Serve pancake topped with mushrooms and scallion greens, with sriracha on the side.
Recipe adapted from realsimple.com
Top Organizers Share Their 11 Kitchen Storage Secrets
Personalize your Command Center
“When considering what to store in the kitchen command center, think about what your family needs to accomplish in this space, then keep only the items that are relevant there. Most people use a command center like a satellite home office to organize bills and mail, plus the kids’ schedules and homework. In that case, you need a shredder, a recycling bin, pens, envelopes, and stamps, plus a message board. Because people tend to drop mail or odds and ends on the desk, I have clients set up in-boxes or cubbies for each family member, just like employees have in an office.” —Erin Rooney Doland
Kitchen Organization Essential: Wall-mounted pockets from Pottery Barn's Daily System let you keep paper organized and off your countertops. You can mix and match in other elements—calendars, bulletin boards, and more—to contain other clutter.
Tip courtesy of RealSimple.com
Wealth Managing Partners, Inc.
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Securities offered through Registered Representatives of Cambridge Investment Research, Inc, a Broker/Dealer, Member FINRA/SIPC. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Wealth Managing Partners, Inc., are not affiliated.
* These views are those of Carson Coaching, not the presenting Representative, the Representative’s Broker/Dealer, or Registered Investment Advisor, and should not be construed as investment advice.
* This newsletter was prepared by Carson Coaching. Carson Coaching is not affiliated with the named firm or broker/dealer.
* 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 3:00 p.m. (London time) gold price as reported by the London Bullion Market Association and is expressed in U.S. Dollars per fine troy ounce. The source for gold data is Federal Reserve Bank of St. Louis (FRED), https://fred.stlouisfed.org/series/GOLDPMGBD228NLBM.
* 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.
* The risk of loss in trading commodities and futures can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The high degree of leverage is often obtainable in commodity trading and can work against you as well as for you. The use of leverage can lead to large losses as well as gains.
* 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.
https://www.economist.com/leaders/2021/05/22/what-to-do-about-a-labour-crunch (or go tohttps://resources.carsongroup.com/hubfs/WMC-Source/2021/05-24-21_TheEconomist-What_to_Do_About_a_Labour_Crunch-Footnote_1.pdf)
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.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)