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Educational Resources

By Bill Hornbarger, Chief Investment Officer

Three things to know

  • With a market cap of one trillion dollars, Bitcoin would have a weight of 0.6% in ‘The Global Multi-Asset Market Portfolio’ of major asset classes. The next smallest asset class is high yield bonds with $2.4 trillion representing 1.5%. (Source: The Market Ear)
  • The MOVE Index (BofA/Merrill Lynch Option Volatility Expectations), which measures volatility in the bond market has increased 31% over the past two weeks as many investors fear higher rates. (Source: Benjamin F Edwards)
  • To reach COVID-19 herd immunity, the U.S. will need to administer 2.4 to 3.4 times as many vaccine doses as it does during annual flu vaccinations. (Source: Centers for Disease Control and Prevention literature, McKinsey & Company)

Three things to watch

  • Federal Reserve Chairman Jerome Powell speaks Tuesday and Wednesday before the Senate Finance Committee and House Financial Services Committee. He will deliver his semi-annual testimony on the economy and monetary policy. He is expected to encourage lawmakers to pass another fiscal stimulus package as well as reiterate the Fed’s accommodative stance.
  • Key economic reports include durable goods (Thursday) and personal income and spending (Friday). Friday’s release includes the Fed’s preferred inflation metric, the personal consumption expenditure deflator. Recent concerns of increasing inflation have helped push global bond yields higher.
  • More than 60 companies will report earnings this week, including Home Depot, Lowe’s, Macy’s, TJX, and Nvidia.

 

The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.

February 22, 2021 |