Market InsightsQuarterly UpdatesFinancial PlanningIn The News

Market Insights, Research and opinion from the team at 2X Wealth Group

Interested in receiving news and updates in your inbox? Subscribe to our blog.
WELCOME TO THE 2X WEALTH COMMUNITY!
OOPS! SOMETHING WENT WRONG WHILE SUBMITTING THE FORM. PLEASE TRY AGAIN OR CONTACT US AT LORI@2XWEALTH.INGALLS.NET
MARKET INSIGHTS
September 15, 2020
Ash & Anxiety In the Air
BY lori Zager & lisa James
Fires are burning. The presidential election has never been more heated, and our whole election process is repeatedly questioned. The cold war with China continues to brew regardless of the political party in power. A global pandemic has taken hundreds of thousands of lives and jobs, created loneliness for our seniors, and caused those entering hospitals for medical procedures to endure alone. Work from home and remote learning has deprived young people of important mentoring and socialization opportunities. In addition to ash, there is anxiety in the air.

Gazing at our red tinted sun, with ash on our driveways, we look to a different yet hopeful future.

Out of disaster, comes change. Concern for the environment has brought social change – shunning of plastic straws and bags, increased demand for organic food, electric vehicles, and solar panels to name a few. The trend to ESG investing, which focuses on environmental, social, and corporate governance factors, continues to gain momentum.

Concern over the future of our country bodes well for getting citizens to vote regardless of age or political affiliation. Election delays may add volatility to an already volatile stock market, but historically markets improve once elections are decided, regardless of which party wins.  

The developing cold war with China and threat to globalization hurts corporate supply chains but may bring needed jobs to U.S. citizens.

New ideas about how to address the income gap in our country are emerging. The paycheck protection program (PPP) and rising minimum wages are a start, along with more progressive ideas like Modern Monetary Theory1.  Bill Ackman, a renowned investor recently suggested establishing an investment account for every child born in America. If invested in a zero-cost equity index fund and prohibited from withdrawal until retirement, $6750 at birth could provide retirement assets of more than $1 million at 65 given the historical 8% annual equity return. Ackman estimates the cost would be $26 billion a year, less daunting than our current pension and retirement problems. Nationwide legalized gambling or cannabis could be used to fund these social initiatives.

With closed bars and restaurants and no office socials, online dating has new importance. Blind dates are no doubt a thing of a past generation.  

Although no vaccine is ready for prime time here in the US, a rapid test may help us get back toward “normal”. A US diversified healthcare company will begin shipping 50 million Covid tests in October at a cost of $5 with results in 15 minutes and no equipment required. The test has a demonstrated sensitivity of 97.1% (positive percent agreement) and specificity of 98.5% (negative percent agreement) in patients suspected of COVID-19 by their healthcare provider within the first seven days of symptoms. Meanwhile many drug companies worldwide are working collaboratively to come up with a safe and effective vaccine.  

So, fasten your seat belts. Make sure your cash levels can handle a few years of spending and your stomach can handle the potential election volatility. Put on your rose-colored glasses or clear ones if you live near us where the sky is plenty red!!  Carpe diem.  

1. Modern Monetary Theory (MMT) suggests countries who issue debt in their own currency can spend as much money as they wish since they can easily create more of their own currency to pay the debt.



The material included herein is confidential and for the sole use of the recipient. It is not to be reproduced or distributed to others without the Firm’s express written consent. This material is being provided for informational purposes, and is not intended to be a formal research report, a general guide to investing, or as a source of any specific investment recommendations and makes no implied or express recommendations concerning the manner in which any accounts should be handled. Any opinions expressed in this material are only current opinions and while the information contained is believed to be reliable there is no representation that it is accurate or complete and it should not be relied upon as such. Investing involves risk, including loss of principal, and no assurance can be given that a specific investment objective will be achieved.  

The Firm accepts no liability for loss arising from the use of this material. However, Federal and state securities laws impose liabilities under certain circumstances on persons who act in good faith and nothing herein shall constitute a waiver or other limitation of any rights that an investor may have under Federal or state securities laws.


2x Wealth Group is a team at Ingalls & Snyder, LLC.,1325 Avenue of the Americas, New York, NY 10019-6066. (212) 269-7757

RECENT POSTS
June 11, 2020
Rip Van Winkle fell asleep after ringing in the New Year in 2020  

He woke up today and asked us for an update. We explained there was a global pandemic that had claimed almost 400,000 lives worldwide and more than 100,000 in the United States.

BY lori Zager & lisa James
March 30, 2020
Contagion and Containment:
How can we treat our ailing financial markets?

Medical experts say widespread lockdowns and social distancing must happen to contain the coronavirus and avoid overwhelming our hospital system.

BY LISA JAMES
March 19, 2020
The S&P 500 Catches
the Coronavirus

Bombs and tweets couldn’t sink the S&P 500, but Covid-19 did.

BY LORI ZAGER & LISA JAMES
December 20, 2019
Why Gold Often Glitters

While there is a role for gold in a diversified portfolio, gold is not universally liked or owned by investors and wealth managers.

BY LORI ZAGER & LISA JAMES
September 23, 2019
Alarming Spike Last Week in Banks' Short-term Funding Costs

The rates on overnight repurchase agreements, known as repos, suddenly rose above 9% last week.

BY LORI ZAGER & LISA JAMES
May 30, 2019
Why do We Care About the Shape of the Yield Curve? What Does it Tell Us?

We never really know where markets and the economy are headed, but market participants constantly look for clues.

Lisa James
November 15, 2018
The Art of the deal

Why does the current market tone feel different from the February and March stock market selloffs? 

Lori Zager & Lisa James
June 5, 2018
What role do Bonds play in your portfolio?

When do they protect you? When do they hurt you?

Lisa James & Lori Zager
March 22, 2018
Rising Interest rates? Inflation? How do they affect you?

The 10-year US Treasury bond bottomed in July of 2016. Since then, the interest rate on the 10-year has more than doubled from 1.39% to 2.9%.

Lori Zager & Lisa James
February 8, 2018
Volatile Markets

Worst Day Ever for the Dow Jones Industrial Average!

Lisa James & Lori Zager
November 20, 2017
Concerned about buying at the top

Perspective As the current bull market ages (from the bear market end in March 2009) investors are increasingly worried about buying at the peak.

Lori Zager
August 1, 2017
The Difference Between An ETF And A Mutual Fund

The basic difference between a mutual fund and an exchange traded fund (ETF) is that an ETF trades like a common stock as its price changes throughout the trading day.

Lori Zager
June 9, 2016
Brexit Flight to Quality

Brexit is spurring a flight to quality move into US Treasuries.

Lori Zager
June 1, 2016
Does it make sense to buy dividend paying stocks?

The short answer is yes.

Lori Zager

The views and opinions expressed in the posts on this page  are those of the author and do not necessarily reflect the position or views of Ingalls & Snyder, LLC.  Certain content on this page were originally  posted in a personal blog maintained and operated independently by the author prior to joining Ingalls & Snyder, LLC. 

The content on this page are for informational purposes, and is not intended to be a formal research report, a general guide to investing, or as a source of any specific investment recommendations and makes no implied or express recommendations concerning the manner in which any accounts should be handled. Any opinions expressed in this material are only current opinions and while the information contained is believed to be reliable there is no representation that it is accurate or complete and it should not be relied upon as such.  Investing involves risk, including loss of principal, and no assurance can be given that a specific investment objective will be achieved.