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Educational Resources

By Bill Hornbarger, Chief Investment Officer

Three Things to Know

  • Most major cryptocurrencies were under pressure on Sunday (April 18) just days after the IPO of Coinbase Global. Bitcoin and Ether dropped as much as 15% and 18%, respectively. Federal Reserve Chairman Jerome Powell last week said Bitcoin “is a little bit like gold” in that it’s more a vehicle for speculation than making payments. (Source: Bloomberg)
  • Despite the strength of the housing market, single-family housing starts are still more than 30% below the peak from 2005. (Source: Census Bureau/Haver Analytics)
  • As downside losses increase, the percentage needed to earn to get back to even also increases. (Source: The Market Ear)
Initial Loss Break even
10% 11.1%
20% 25%
30% 42.9%
40% 66.7%
50% 100%
60% 150%

 

Three Things to Watch

  • Economic releases this week include updates on new and existing home sales, jobless claims, and PMI as well as the leading economic index. The data is expected to be strong, with the exception of existing home sales where the market is suffering from a lack of available inventory.
  • The earnings season continues to heat up with multiple big-name companies expected to report including IBM, Coca-Cola, United Airlines, Johnson and Johnson, Netflix, Philip Morris, and Verizon. So far, earnings growth for the S&P 500 is 30.2%, based on actual reports and estimates, making it the best quarter since the third quarter of 2010, according to FactSet. This three-month period is the first to be compared to year-earlier profits that were affected by the pandemic.
  • The European Central Bank’s Governing Council meets. Extraordinary policy measures are expected to stay in place but the ECB is expected to begin to discuss what happens post pandemic.

 

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.