23 July 20

1) The business community of America is facing a national coin shortage, making it even more difficult for the retail sector to function. Across the country, restaurants, grocery stores, and retail outlets are posting signs near their cash registers and drive thru windows asking people to pay with credit cards or exact change. This shortage is a result of the spreading coronavirus closing businesses that crippled economic activity in the U.S., so the circulation of coins dropped off significantly. Furthermore, the U.S. Mint who manufactures the nation’s coinage supply, has decreased staffing because of the pandemic, thus reducing the availability of coins.

2) New research has directly connected the explosive growth of passive investing to deteriorating corporate performance over the long haul. Companies with higher passive ownership spent more on stock repurchases, but saw worse financial outcomes. Passive investment can allow opportunistic management behavior with negative effects of future company performance. Companies with high passive ownership are less monitored, therefore allowing management to act unhindered in their own best interest. Passive ownership is a result of investing by mutual and ETF funds who track indexes instead of actively manage counterparts.

3) The government has placed orders for up to 600 million doses of Covid vaccine to Pfizer and BioNTech. The U.S. health officials have agreed to pay $1.95 billion dollars for 100 million doses of a vaccine. Nations around the world have begun ordering vaccines that are still being tested in an effort to halt the spread of the virus. To date, the coronavirus has killed 600,000 people around the world. It is planned the vaccine will be free to U.S. citizens.

4) Stock market closings for – 22 JUL 20:

Dow 27,005.84 up 165.44
Nasdaq 10,706.13 up 25.76
S&P 500 3,276.02 up 18.72

10 Year Yield: down at 0.60%

Oil: up at $41.90

19 February 2019

1) American retail sales dropped in December to their lowest in nine years. This weakness shows an across the board slowdown of the economy.

2) The US student debt delinquency tops $166 billion dollars. These are debts that are ninety days or more behind. Wide spread defaults could drive the federal deficient higher if not paid.

3) There is a record seven million Americans that are three months or more behind in their car payments, a red flag economic warning that many Americans are struggling to pay their bills. This is especially true for showing duress in the low income working class.

 4) 15 FEB 19 Stock market closings:

Dow          25,883.25    up    443.86
Nasdaq       7,472.41    up      45.45
S&P 500      2,775.60    up      29.87

10 Year Yield:     up   at    2.67%

Oil:    up   a   t $55.79