So for the last little while, things have been blah. Not that I am complaining; I think February and March all provided enough excitement to last us for a couple of years.
However, this week there were a couple of key developments that I wanted to discuss with you that I think are important to keep in the back of your mind as we progress through this summer:
- WRAL out of Raleigh indicated that there is a doctor’s office in WIlmington, NC soliciting participants to be included in a Phase 3 trial of a potential COVID-19 vaccine.
- That Oxford vaccine we discussed in our blog a couple of weeks ago is now undergoing trials in South Africa and is on track to roll out a trial here in the United States. According to CBS News, the trial will involve 30,000 people and is being backed by $1 billion from the United States government.
- The Federal Reserve just placed restrictions on bank dividends and buybacks. This simply draws a shoulder shrug out of me. This is being done to preserve the integrity of the financial system and is due to no fault of their own, so the Federal Reserve here is acting before it is a problem. It will be interesting to see how investors view this news, but I for one would relate it to driving a car with a half tank of gas before you head into a major metropolitan area….you may be ok, but why not take the prudent step and fill up before heading in. Same could be said for the Fed’s viewpoint on banks here.
One other thing I have noticed recently is investor sentiment towards some of the companies that have thrived through the pandemic, and crushed their earnings, are starting to be sold off in market bouncebacks. Seems counterintuitive, doesn’t it?
There are opportunities presenting themselves still, albeit in more limited numbers.
Finally I wanted to share with you this week’s Street Views video featuring Ryan Detrick of LPL Research. Ryan really does a great job conveying my similar feelings about the markets (and economists) at this time and I hope you will give it a watch:
Financial Recon 