17 March 2021

1) One part of the U.S. infrastructure that America can invest in now is the recycling infrastructure. The recycling infrastructure and related new technologies hasn’t been updated for roughly 20 years, in particular the massive growing plastics waste problem. Several years ago, China’s National Sword policy ended its role as a recipient of western waste, leaving the west with a seriously growing waste problem. Some consider the up coming bill on infrastructure upgrade will present an opportunity to leap ahead of the plastic problem with money for developing new technologies.

2) As if the American economy hasn’t suffered enough with the pandemic and record snow storms across the land, one more massive snow and ice storm system is sweeping across the nation again. Not only is there heavy snow, torrential rain and severe weather, but also there were 14 reported tornadoes, and additionally, wind gusts reaching as high as 87 mph in the Texas Panhandle with the region experiencing baseball-sized hail. Over 6 inches of rain has been reported in southern Missouri and over 4 inches of rain reported in Kansas and Nebraska, with all three states seeing flooding due to the storm. Snowfall rates of 1 to 2 inches per hour in Colorado and Wyoming, with up to 4 inches per hour locally in the foothills and mountains, closing highways and freeways. Totals of 1 to 4 feet of snow is expected in parts of the Rockies from this storm with 6 to 12 inches from Denver to Rapid City.

3) The microchip shortage continues with GM forced to shut down its Chevy Camaro Production. The global microchip shortage will force some automakers to prioritize the production of only their most important models. For GM, this means that Chevrolet Camaro and Cadillac CT4 and CT5 production must be temporarily paused. Whatever microchips GM has access to, will be diverted to those factories remaining in production, leaving other lines to fight for what’s left. This problem comes just when automakers are trying to climb out of the financial disaster from the pandemic, when makers are needing to make every auto sale they can get, to bring in much needed revenues. Many automakers are now delaying or pausing their development programs, the debut and on-sale dates receding, thereby further aggravating long range revenues. The microchip shortage was caused by semiconductor production stoppages early in the COVID-19 pandemic. Automakers underestimated the rate at which sales would recover, and so, it left them behind all the other companies that rely on microchips. It’s unclear when the shortage will end. Many major automakers, from Honda to Mercedes-Benz have had to either pause or cut production over these shortages, so GM isn’t unique here.

4) Stock market closings for – 16 MAR 21:

Dow 32,825.95 down by 127.51
Nasdaq 13,471.57 up by 11.86
S&P 500 3,962.71 down by 6.23

10 Year Yield: up at 1.62%

Oil: down at $64.91

10 November 2020

1) The United States became the first nation to surpass 10 million coronavirus infections since the worldwide pandemic started. This is the feared third wave of the Covid-19 virus now surging across the nation. America has reported about a million cases in the past 10 days, the highest rate of infections since the first reporting, while worldwide, coronavirus cases now exceeds 50 million. In the United States the daily average of new deaths account for 1 in every 11 deaths worldwide. The Midwest remains the hardest-hit region based on the most cases per capital with the top five worst-affected states being North Dakota, South Dakota, Wisconsin, Iowa and Nebraska.

2) With Joe Biden now expected to enter the Oval Office, the American workplace is going to look much different. Biden has four decades of union leaders behind him, making him potentially the most labor-friendly president of the U.S., who won the endorsement of almost every major union in the country. Labor reform is a fundamental part of his administration with at least one union leader to be named to his Cabinet. As the coronavirus pandemic continues to drive permanent job losses and compromise worker safety, the case for structural change may be stronger than ever. A sharp turn from the Trump White House on labor policy is expected with the Democrats to reverse the present labor policies. Worker safety enforcement, progressive labor policy with a federal minimum wage of $15 per hour, boost manufacturing via trade, and a more labor-friendly National Labor Relations Board are just some of the areas for major changes to be made. Bill Clinton and Barack Obama push through a wide range of policies, only to have their plans overtaken by other agenda items like health care. But the most important factor being overlooked is AI (Artificial Intelligence) experts are predicting that up to 50% of American jobs will disappear in the next 15 to 25 years. Also, any time you raise the cost of labor, then those jobs will be replaced by automation.

3) Japan moves to reduce its fossil fuel emissions, with Japan being the fifth largest polluter, by using hydrogen fuel for its energy needs. Hydrogen offers the greatest potential to decarbonize industries like steel, cement and heavy duty transport, to achieve net-zero emissions.

4) Stock market closings for – 9 NOV 20: The Dow surged to 1,500 points on news of an effective Covid-19 vaccine trials by Pfizer with early results showing at 90% effectiveness. The Dow was briefly over 30,000.

Dow 29,157.97 up by 834.57
Nasdaq 11,713.78 down by 181.45
S&P 500 3,550.50 up at 41.06

10 Year Yield: up at 0.96%

Oil: up at $39.84

6 November 2020

1) This year’s elections are revealing some interesting things about the new young voters and the society they want. Voters are backing legalized drugs, higher wages and voting restrictions. In Oregon, they have eliminated all criminal penalties for possession of hard drugs. Four other states legalized recreational marijuana. Voters continue to support higher wages with minimum wage settings in states, with Florida raising their minimum to $15 an hour. Abortion encountered more restrictions on the state level. Several states adopted measures, including constitutional amendments, to limit voting rights to U.S. citizens only.

2) The White House task force is warning that new cases of Covid-19 are increasing ‘exponentially’ despite President Trump’s claims that the pandemic would vanish on November 4. Rising case numbers, hospitalizations, and deaths nationwide are causing the task force to sound dire warnings. Recommendations are 1) Do not gather without a mask with individuals living outside of your household, 2) Always wear a mask in public places and, 3) Stop gatherings beyond immediate household until number of cases and positive tests have decrease significantly. The task force is warning states and universities/colleges of the risks during the up coming holiday season and the increase risk of spreading of the virus. States with the highest number of new cases per 100,000 are North Dakota followed by South Dakota, Wisconsin, Montana, Wyoming, Iowa, Alaska, Nebraska, Utah, and Idaho. Vermont remains the state with the lowest number of new cases.

3) Renowned investor Warren Buffett’s (Berkshire Hathaway CEO) favorite market indicator nears record high, signaling stocks are overvalued and riskier than ever for investing. His indicator takes the total market capitalization of a country’s stocks and divides it by quarterly GDP in order to compare the stock market’s valuation to the size of the economy. Currently that’s 168% which signals a record disconnect between asset prices and the economy, and a warning to investors to exercise a great deal of caution towards equities as an asset class. The stock market has never been as expensive as it is today, and not only does this mean that forward returns will likely be exceptionally poor, it means that downside risk has also never been greater than it is today. This indicator also soared before the dot-com bubble burst and surged in the months leading up to the 2008 financial crisis.

4) Stock market closings for – 5 NOV 20:

Dow 28,390.18 up by 542.52
Nasdaq 11,890.93 up by 300.15
S&P 500 3,510.45 up by 67.01

10 Year Yield: up at 0.78%

Oil: down at $38.51

9 September 2019

1) Several state attorney generals will investigate Facebook for possible stifling competition and putting users at risk. This comes after reports that Google will face antitrust investigations from state attorney generals. The investigations will center on actions that endangered consumer data, reduced the quality of consumers’ choices or increased the price of advertising. States investigating include New York, Colorado, Florida, Iowa, Nebraska, North Carolina, Ohio, Tennessee and the District of Columbia.

2) President Trump unhappy at GM for decision to close four of its domestic auto plants. General Motors, which was once the giant automaker in Detroit, is now one of the smallest. GM has gone from 33 plants in the US to 29, but has an additional 27 manufacturing plants in China. Presently, GM sells more cars in China than it does in America. This accounts for $16 billion dollars in profit for GM.

3) The American consumer is carrying the U.S. economy in last quarter. The personal expenditures rose last quarter while business and residential investment, net exports and inventories have declined. There are concerns that consumers may rein in spending from fears of economic future. Global commerce is slowing, partly in response to the trade war, and without strong consumer spending it’s hard to see alternate sources of economic growth.

4) Stock market closings for – 6 SEP 19:

Dow               26,797.46         up     69.31
Nasdaq            8,103.07    down    13.75
S&P 500           2,978.71          up      2.71

10 Year Yield:    down   at    1.55%

Oil:     up   at    $56.73

21 March 2019

1) Fears of climate change is causing some retired seniors to pull up and move out of Florida, which for many years has drawn the ‘sixty plus year olds’ demographics for a life of peaceful retirement with its low cost of living, no income tax and nice warm weather. But the threat of hurricane damage from flooding and rising sea levels is also making the associated insurance cost soar, in turn causing retirees to reconsider and move more inland, the result some are claiming from global warming.

2) Losses from the flooding in Nebraska is estimated to be over one billion dollars with more flooding forecasted. But even worst is the anticipated impact on farmers. Last year, 19% of Nebraskan farms filed for bankruptcy, and many more are now anticipated to file as the consequence of the flooding pushes more farmers under.

3) The Feds have elected to not raise interest rates again this year, expecting an economic slowdown ahead. There isn’t any need to guard against inflation coupled with indicators of slower growth from household spending and business fixed investment. The GDP was 2.1% instead of the expected 2.3%.

4) 20 MAR 19 Stock market closings:

Dow                25,745.67    down     141.71
Nasdaq             7,728.97          up         5.02
S&P 500            2,824.23     down         8.34

10 Year Yield:    down   at    2.54%

Oil:     down   at     $59.99

19 March 2019

1) Used aluminum cans are unwanted by scrape metal dealers, because the metal is less desirable for structural aluminum in aircraft and cars. Scrap prices have dropped 30% indicating the economic challenges for recycling.

2) Flooding in Nebraska has left the state nearly paralyzed the flood leaving people isolated and bringing business to a near standstill. It is still too early to assess the economic losses, but it’s expected to be tremendous.

3) Home Depot, the home improvement supplier, is going on a massive hiring spree planning to hire 80,000 new people this spring to staff stores. Positions are both permanent and seasonal part-time jobs. Seasonal jobs can be for as long as 120 days.

4) 18 MAR 19 Stock market closing:

Dow           25,914.10   up   65.23
Nasdaq        7,714.48   up   25.95
S&P 500       2,832.94   up   10.46

10 Year Yield:     up   at    2.60%

Oil:      down   at    $59.02