By Bill Hornbarger, Chief Investment Officer
Three Things to Watch
- This week will feature the virtual CoinDesk Consensus conference, which “unites professionals across the globe for an immersive virtual experience aimed at exploring the evolution of cryptocurrency and blockchain technology.” High profile speakers include the Fed’s Lael Brainard, ARK Invest’s Cathie Wood, and Bridgewater’s Ray Dalio.
- The Fed’s preferred inflation measure, the personal consumption expenditures price index, will be released Friday. It is expected up 0.6% for the month and 3.5% from a year ago, well above the Fed’s stated 2% “target.”
- The wild swings in cryptocurrencies last week have investors on edge. Bitcoin fell as much as 30% on Wednesday, to about $30,000. Though it recovered to above $42,000, it slid again on Friday. Investors will closely watch cryptocurrencies this week.
Three Things to Know
- Domestic U.S. fares are up 9% since April 1 while international fares are up 17%, according to research from Bernstein published this week. And fares are continuing to rise. (Source: CNBC)
- The use of margin debt on the New York Stock Exchange increased to $823 billion in March 2021, an all-time-record total. Margin debt was $479 billion in March 2020 or a year earlier (Source: MFS, Financial Industry Regulatory Authority).
- The Taylor rule is one kind of targeting monetary policy used by central banks based on three main indicators: the federal funds rate, the price level and the changes in real income. At the end of the first quarter of 2021 it suggested the Fed funds rate should be 2.75% vs. the target rate of 0%. (Source; Bloomberg)
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.