Weekly Market Review
Michael Acho
Guardian of the Wealth of the Most Productive People on Earth | Creating, Protecting and Distributing Wealth for Clients
Good afternoon,
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“Weekly Market Review is boring without me being featured. Just saying….”
Was a note from my daughter after last week’s message.
Thanks for the input, but if you want to be featured, you need to do or say something interesting or memorable.
“I do and say interesting stuff all the time.” She reminded me.
Ok, I’ll try to pay more attention.
?In the new normal of work from anywhere, this week’s message is being composed mask less from sunny South Florida.
?The DJIA fell 900 points last Friday and some more this week supposedly because they have identified yet another new variant of the covid virus and the pundits say that traders are afraid of how the politicians will react. Will they try to lock us down and turn off the economies again and so forth. https://www.cnbc.com/2021/11/26/covid-developments-to-rule-the-market-once-again-in-the-week-ahead-after-fridays-rout.html
At the risk of being repetitive and redundant, because I’ve said all this many different times over the years, essentially every time they tell us that the world is about to end, that markets go up and down because markets go up and down. The press just needs to find something to blame it on so they can post scary headlines and get clicks. I saw a cartoon one time that had a newsperson sitting at a desk and the caption read, “Market shrugs off Martian invasion, it was already factored in, claims one economist.” Second, of course they found a new variant, does that really surprise anyone? They have to say something to keep up the fear. They’re shutting down travel, again, from certain places and talking about “doing anything and everything” to fight the new variant. https://www.cnbc.com/2021/11/28/fauci-says-us-should-prepare-to-do-anything-to-fight-omicron-variant.html?Maybe we should just throw some more money at it.?
Really? Because all those measures have worked so well so far? As the Babylon Bee so eloquently put it “To Defeat New Variant, Experts Recommend Doing All The Things That Didn’t Work The First Time.” I contend that the world won’t put up with more lockdowns and mandates again. I submit this as exhibit 1.Rrather than succumb, again, to the fear mongering media, here is how 105,000 Michigan football fans reacted after the big win over Ohio State on Saturday. They charged the field. And they did so peacefully.
?Do they look like they’re afraid of a new variant of the virus? They don’t to me.?And meanwhile, in that other universe once called Los Angeles, you can’t go anywhere without a mask and vax card. Not a restaurant, not a gym, not a mall, not a coffee shop, not a hair salon, nor any dozens of other places. https://www.latimes.com/california/story/2021-11-08/la-s-new-covid-vaccination-proof-goes-into-effect-today
Which of those scenarios seems more sustainable? Left to their own choices, would people rather celebrate an exciting event with thousands of their friends or be denied entrance to a coffee shop because they don’t have the appropriate paperwork?
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Here is First Trust Portfolios economic team saying basically the same thing. They call it the covid rollercoaster. https://www.ftportfolios.com/Commentary/EconomicResearch/2021/11/29/riding-the-covid-rollercoaster
They did not get an advanced copy of the WMR, but we seem to be on the same wavelength.
?The Lincoln home office has put out a client letter about the market volatility associated with this latest virus news. I won’t share it here, and frankly I prefer my own explanation to theirs, but if you’d like to see it, lemme know and I’ll send it over.
?And while we’re at it, and this is just my opinion, a new Greek letter name for the new variant is not nearly scary enough. It should be the zombie variant, or the apocalypse variant, or the relative who won’t leave variant or some other adequately fear inducing label. Another Greek letter just won’t do. By the way, has anyone else noticed that “omicron” is an anagram for “moronic?” Wonder if that’s intentional… “We are more often frightened than hurt and we suffer more in imagination than in reality.” – Seneca.
?And just when we think we might be in control of things, here is a cool video that shows 24 hours of the rotation of the Earth with the camera focused on the sky. https://artuniverse.eu/gallery/190705-rotation24h
So really, we humans are slightly evolved monkeys riding on a spinning rock, revolving around a medium sized star in an average sized universe amongst a billion other universes. How’s that for perspective? “We are an impossibility in an impossible universe.” – Ray Bradbury.
?Now let’s switch WMR gears and focus on some more positive things. The world is not going to end. The markets will continue to go up and down. Inflation is here for a while. Crypto and blockchain are real and here to stay. All topics that I’ve covered before so I won’t go into them again this week, but please give me a call if you’d like to talk about any of them individually and how they might affect you and your portfolio.
?The holidays are upon us soon so make your plans now. Order those gifts, choose those dinner menus and invite friends and family. Speaking of gifts, I’ve asked my kids what they’d like. It proves much more successful if I just ask what they want, in what size and then procure it. The days of randomly trying to pick out something they’ll like are pretty much over. And it seems the kids have figured that out as well. Many years ago when I would ask that question, the older two would hem and haw, “I don’t know. Whatever.” Etc. and the youngest would provide a detailed list. So naturally, the items on her list magically appeared at Christmas. Now, the older ones are on board with that program and they provide more than adequate instructions of their requests. Which, despite the spoiler alert, they will be receiving on Christmas. While it is easier when they tell me what they’d like, it does seem that their tastes have become more expensive.
?As a public service, and because I’m an Amazon shareholder, remember that if you use smile.amazon.com, rather than just amazon.com, a portion of your purchase, albeit a small portion, will be donated to your charity of choice.
?This week’s chuckle is another Adam Sandler favorite, the Hanukkah Song, https://www.youtube.com/watch?v=KX5Z-HpHH9g
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LF27 – How old would you be if you never knew your birthday?
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Have a great week and stay healthy.
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This material includes links to third party sites not affiliated with Lincoln Financial Advisors.?Lincoln Financial Advisors is not responsible for the content and does not guarantee the accuracy of any information or material contained therein.?The opinions expressed are those of Michael Acho and not necessarily those of Lincoln Financial Advisors Corp.?CRN-3943552-120321
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Michael J. Acho, MBA, CFP?
Private Wealth Advisor
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